Is this a good investment? Hold & Rent strategy help; Hard Money.

[Kevin Jung]

Bunch of questions for my scenario; please help!

Considering buying a townhome near a beach. Lots of vacation rentals, casinos, and a military base nearby.

Listed: 140K, Offered 140K (in my name as of now). HOA 58/month, Tax 89/month, Insurance 136/month. Rent nearby 1200-1300/month.

So I did the math, and the rent pretty much cancels out the mortgage with 0 Cash Flow. **BUT** the place has a bunch of military folks coming in every week for training who stays for 4-7 months. They get at least $2500 a month to use for lodging. If they don't use it, they lose it. How do I know? I'm one of them. Other investors already taking advantage of the system. So potential $2500/month rent with 500-700 CashFlow, which is my goal.

Q1: Is this investment worth the risk? I ready talked to the property manager that deals with military folks and agreed this townhome can be listed in their system for rent. But they charge 20-25% of the monthly fee. And I would need to spend around 5K for furnishing it. 3bed/3bath.

Q2: There's 2 other exact same property listed and hoped to get a partner to buy all 3. Is anyone interested? PM me please!

I have only around 40K cash so I plan to use Hard Money, 20% down, 4-5% with 2-4 points, and some other fees. (Don't qualify for other loans due to income history and DTI. Good credit of 780). I put an offer already using my name but am in the process of creating an LLC, ASAP.

Q3: I was hoping to create a business checking, business CC, and hopefully business LoC as soon as I got my EIN. But since it's my first LLC and no business credit, I don't see myself getting a high limit on any of those even with my credit score of 780. I was really hoping to use the business credit card and pay myself using plastiq. And using it as downpay and other costs for this property. Cuz I might be short on a few K's, which I can borrow from friends and family, but I rather use the business credit strategy. Any opinions here?

Q4: First time using hard money, so not an expert. I plan to move all my money to business checking as soon as it's formed. HM Lenders are asking for a statement or proof of funding. Does this work?