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Updated over 6 years ago,
Buy and hold strategy using credit
I want to buy a rental property with credit. The card is 0% interest for 12 months. Could someone tell me if these number are correct and how I can get out of the down payment cost on my credit card?
$50,000 on credit card 0% interest/12months
$45,000 cost of rental
$750 rental income
So I want to buy the rental for the $45,000 and refinance it with a bank loan which is going to require a 25% down payment ($11,250). So after the refinance my credIt card balance wIll go from $45,000 to $11,250. I still have to pay a 1% monthly fee for the card and now I have a mortgage tacked on.
Expenses:
$400 Mortgage
$112 credit card payment
$80 property management
———
=$592-$750=$158
My question is how do I structure this so I get all my credit back so I don’t have to pay interest after the 12 months?