Paying Off A Property On A Credit Card

[Duane Hundley]

I purchased a property back in Aug using a credit card with 0% interest for 12 months with 4% trans fee. A little about the property:

it was a total amount $25,400, 

Rent: $500

Expenses: $40 per month

Paying: $460 per month current towards credit card

I have another credit card already with my credit union that's 7.99% and my plan was to roll it over to it around Oct 2017. I was also planning to start paying extra on the property using my own cash flow starting in Jan from $500-$700 extra per month.  This would put my balance around $13,960 at paying the $500 extra from Jan until Oct. After moving it to the other card for a few months I most likely could roll it back to my 0% card and get a promo rate for 0% again. I thought about then just paying the $460 a month for around two years and that would pay the property off.

While doing this I won't have much money to put aside for other deals, but once it's paid off I should be able to fund another deal pretty quick, I want to get two more properties for total of 4. What are your thoughts or what would you do different? I could pay it off before Oct of 2017 and pay no interest at all, but I won't be able to do any other investing. I also want to add a close family member lives in the property.

Thanks,

Duane

[Dan Mahoney]

@Steve Vaughan, yes this exactly.  Credit card promo rates are great to finance anything for short term but will come back to bite you if you let it ride for too long.