Can I finance real estate by doing this?

[Joshua Hollandsworth]

I have an idea, because financing 1-2 properties per year isn't cutting it. Can I do this?

Here is a scenario:

Rental property sale price- $50k

Cash required to finance- $15k (Down payment, appraisal, inspections, closing, minor repairs)

Rent- $900/mo

Take out a personal loan for $10k DP.

Let personal loan season for 2 months (Or 6 depending on lender)

PITI W&S- $700 including personal loan.

I would make no money for 7 years, but I could buy more property.

Basically, I would pay all out of pocket cost, but finance down payment. I would love your input. Thank you!

[Caleb Heimsoth]

@Joshua Hollandsworth. You can try this but it’s likely mortgage fraud. The bank that does the loan will ask where the money came from for the down payment so you’ll have to tell them.