Purchasing a $50,000 rental with credit card discussion

[Kenneth Hong]

Hello Everyone, I am thinking of purchasing a rental home in the $30,000- $50,000 range and would like to use a credit card to do it! I have enough cash but I think it would be nice to use some leverage to purchase several rental properties. I am also thinking I can get some credit card points as an added side bonus. There are some CC deals out there that offer 0% for one year, perhaps I can use that for a year before converting to a traditional mortgage. Thoughts? Best, Kenneth

[Account Closed]

You can do it but keep in mind it will drop your credit rating in two ways:

1) Your debt to income ratio

2) Your available credit to credit card balance ratio

You are better off going to a credit union and applying for a line of credit.  At least that's been my experience.