Use Credit Cards to fund a deal

[Nadirah Dawson]

Hello Everyone! I recently used this company that got me approved for 8 credit cards that gave me a line of credit of $60K...after going to a few guru classes, they told me I could use the credit cards as "investor cards" and use towards my down payment/ closing costs, I quickly realized 1) the credit cards to use for down payment / closing cost is counted as debt for banks when they determine your debt -to -income ratio. 2) They also didn't want me to liquidate the cards in the bank as they didn't want large deposits made. So now I have these cards and am not sure the best way to use them unless I find a deal where I can pay straight cash. 

Originally, I was think to use the cards as my down payment for a 4 unit. The building already has tenants and I could do a cash out refi in 6 months to pay back the cards. But I keep being told not to use the cards for a hold, but rather a flip.

 Now, there is a house for $25K, i can liquidate the cards to buy this house, use about 30K to rehab it and put it on the market to sale (the cards have 0% apr for 24 months). I can use the remaining $5K to pay the monthly minimum until the house is sold, where I can then pay the cards off and have some capital from the profits of the sale. Problem is, it's in Irvington, NJ and I don't think that area is big on buying homes but rather renting. 

Does anyone else have a good strategy to use the cards so I can begin my real estate portfolio? Should I use to flip or hold? thanks everyone...

[Emily B.]

I would use them for both if the deal is right. I'm doing something similar right now, but using them for rehabbing and planning to do a cash-out refi when finished. I didn't have 0% as long as you have, so I'd say take advantage of it as soon as you can. Provided you can turn something around quickly, you could get a few uses out of them.