/biz/ - Business & Finance

What the fuc kwas that???????????????

We're busting the old high, but THEN it falls apart.

Anon bros let me run something by you. I currently have $40,000 in savings (cash). I would like to use that money to take out a secured personal loan for $23,000 at a favorable interest rate (say 5%). I would then like to take that money use it as a down payment on a rental property valued at $117,000 out of state. Some back of the envelope math says i'll end up paying roughly $930 a month (personal loan + mortgage at 7%). Assuming i can find someone to rent the property for $1100 a month (average rent is $1400 for the area), why shouldn't i do this?