Is Closing Cost Funding Possible on Land Contract Deal?

[Blase Haynes]

Hello,

I am going into my last semester of my undergraduate degree and am REALLY trying to hit my goal of owning a cash flowing rental property before I graduate. I have been on this journey for about 3 years, and I had given up. Without the ability to get a traditional mortgage, I simply didn't have enough cash to buy a property. Then, I learned about all the amazing benefits of creative finance! 

I have a deal on a duplex that is for $400,000. No money down, but I would have to cover closing costs of around $22,000. 

What would be my best options for raising the capital needed, considering I have a credit score around 720-750 and only about $3,500 liquid cash? 

[Randy Rodenhouse]

In my humble opinion, if you found a deal that you don't have to put money down on, but can't even cover the closing costs then you probably shouldn't be buying the property. A duplex or any type of rental has its ups and downs and if something breaks you have to get it fixed which cost additional money or if tenant does not pay, etc.  I don't want to discourage you, but I think it's wise to consider saving more cash or raising some capital first before you get into a $400k property.  You will need reserves of more than even the $3500 you have now liquid.