BRRRR Method Using 0% Interest Credit Cards

[Jared Coley]

Does anyone have experience buying rental properties using 0% interest credit cards and then completing the BRRRR method to payoff the credit balance and then repeating?

If so, what kind of credit card did you use?

How long until interest is charged?

Any problems along the way that you could share?

Credit limit?

Feel free to share all your thoughts!

Thanks in advance!

[JD Martin]

I have done several rehabs that way. You need to have pretty high lines of credit, a lot of cards or a really cheap rehab to make it work, and you need to have a mechanism to get the card paid off before the interest kicked in. I used 0% 12-18 month cards when I have done it. Some of them had 0% transaction fee, others had nominal ones such as 2%, such that borrowing $10k to do a rehab would cost $200 in interest over 18 months. 

I have actually bought a house with a credit card. This only really works though if you either have a concrete plan to refinance the money or you have the cash (or will have the cash). I have used it when I had a couple of deals going at the same time and was temporarily low on accessible cash. 

Cards I have used: Bank of America, Discover, Citi, American Express, Capital One, US Bank, Chase. I think I have had cards from pretty much every major issuer of credit. Most of my cards have pretty high limits - all of them 5 figures+ . If you had cards with $2-3k limits you'd have to string them together or have other funds available.