Quote:
Originally Posted by Hog Farmer
Here's a little trick I'll share.
I bought 8 rental properties at different times over about 7 years that the previous owner financed 20% with a balloon payment at the end of 5 years.
When the balloon payment came due and I did not have the cash to pay it ,I would write a check on a 0% CC offer that I received. I get them almost weekly in the mail. That gave me another year or 18 months to pay it off without any interest.
My goal was always to let the tenants rent pay for the property without any cash outlay from my pocket.
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I hope that works out for you. Someone I used to work closely with lost a 7 figure net worth at age 35 doing almost the exact same thing on section 8 properties. What is worse is that he mentored a friend of mine. That friend left a high paying job to go into real estate the same way. He went broke, too.
It can work, but they were putting a lot of eggs in the baskets of renters. Almost by definition, renters are not the most reliable people from a cash flow standpoint.