Payment buffer until PM finds a tenant?

[Erin Gipson]

As I continue to discuss this new investment venture with family, I continue to get the same question asked. 

I plan to go at this with no money out of pocket. I plan to do the research, construct a plan to pitch to a private lender, find a lender, find a deal, find a property management company, establish the down payment I'll need, use the money from the lender as a down payment for a 7/6 ARM (to keep payments low in order to more aggressively profit the funds to pay back the lender ASAP), once I pay back the lender refinance the loan. But what do I do about the loan payment until the property management company finds a tenant to rent the property? Do I simply include a little more on the requested amount from the lender as a safety net (say 3 or 4 monthly payments)? Any thoughts?

[Jonathan R McLaughlin]

thats quite a plan. Its a bit like " I plan to study, get a job paying 1M/year/then get elected to congress/then become president 

The snark is intended to be friendly, used to highlight that each of these steps--while possible--requires a fair amount of work and the ability to convince people you are a worthwhile risk. 

The idea of "skin in the game" is important. When you lead with "I plan to go at this with no money out of pocket" you are definitely setting a high bar for people to find you credible. At the very least, show me you can find a potential deal.