Purchasing rental property with No Money Down

[Luke Fernandez]

A local credit union has given me the opportunity to purchase a rental property with potentially no money up front, no down payment and no out of pocket for repairs needed. It would be a personal loan to offer and purchase with. Then when title is in my name it would switch to a HELOC with a variable 6% interest rate. The term will be 5 years or less and I am looking at the total loan being $25k or less. To me on the surface it looks like a good deal. I'm just seeking input from more experienced investors. Thank You in advance.

[John Warren]

@Luke Fernandez it may be a great deal, although we don't have any of the details. What kind of property is it? Why is the credit union so desperate to get rid of it? Are there tenants currently? Are they paying?

From the outside with, admittedly, limited info, I am going to assume that you will need to put a bunch of cash into this property once you acquire it. No one sells a well performing asset for no money down, so there has to be a catch. As long as you know what the catch is, and are ok with it, then I would say go for it.