How should I finance my next Warren, Michigan property?

Question

Hi BP. I'm newer to the site and have one deal under my belt (see more property info on my profile).

It's cash flowing and now I've got the itch. I'm looking for my next 3 bed, 1-2 bath in the same area (N or 8 Mile, W of Mound, S of 696, E of Dequindre) but I'm open to other areas as well. Born and raised in Metro-Detroit, I know the area and markets (Warren, Hazel Park, Ferndale, Oak Park, Berkley) fairly well. I have a few properties I'm looking at and I want to pull the trigger, I just don't have the funds. I've got just about everything else down; triple checking the numbers, cost-effective marketing/eliminating vacancy, screening the crap out of tenants, a great network for maintenance, etc. I just don't have the funds for another property quite yet.

I've read Brandon Turner's The Book on Investing in Real Estate with No (and Low) Money Down. I'm just wondering if anyone here has been in this position before or if anyone has any tips.

If you're looking to invest or partner in this area, let chat! I've only got the one deal under my belt so far. But where I lack experience, I've got enthusiasm, passion, and hustle. I've had a small taste of this lifestyle, but I love it and won't stop learning, networking, or helping others when I have the opportunity.

So again, any and all tips are appreciated. I'd be happy to help anyone getting started out too. Thanks for reading!

Leonard L. · Answer

Hi Guys! I'm in the same boat. I bought my first SFR in S. Warren last year and recently got my first Tenant. It was a learning curve. I would like to meet others in the area so I can build my REI network, and I would still like to do more deals in Warren/Eastpointe/Roseville now that I've done it once and have a feel for it. I did it as a cash deal and now that I have cashflow, I'm looking to HELOC (or similar) the first for a second deal.

Katherine S. · Answer

Congratulations, Christian!  We're just starting too and I think I have that same bug!  Just had an offer accepted Tuesday, we haven't even gotten the inspection done yet, and I'm already looking for the next one.

Keri Middaugh · Answer

Hi Christian, Congrats on your first property and your commitment to the industry! I would advise networking face to face at some of the local meet-ups. There you can build relationships, and see where you can add value for others. Mention that you are looking to partner on your next deal, and that you have several leads that you are checking out on Thursday (or whenever, but be specific). Usually there are a handful of hard money lenders, and also some private lenders who attend these groups. I, personally, am networking for a stable investor to use my modest SD-IRA for a respectable return.

Best wishes,

Keri

Best wishes,

Keri

Jay Daug · Answer

That is definitely true about Warren's job opportunities; I drove in and around Eastpointe, but I didn't see much industry over in that area.

Christian Hall · Answer

Hi Jay, thanks so much! Right on.

I feel you on that. There can be natural paranoia of agents and lenders being in "cahoots" haha. I had a personal relationship with my agent before we ever did any business so there was a great foundation of trust and mutual benefit. I was happy to accept a lending reference even though I did still interview and price shop several other lenders.

I actually just took the property numbers off my profile. It's a little personal for a public profile. My bad! I'm happy to privately discuss any financials with you! I'll add you now.

There's a little more diversity in Warren as a whole compared to Eastpointe (which is roughly a quarter of the size and population of Warren). I'm focusing on south-Warren which I have noticed to be quite comparable to Eastpointe as far as home size and style.  There's a little more going on in Warren job-wise (GM tech center, FCA plant, etc). Most areas in Warren north of I-696 are much nicer/higher income. It's pretty industrial in some spots where Eastpointe is heavily residential. But they're pretty similar!

As you approach your first deal I'm more than happy to help any way I can. Let me know!

Jay Daug · Answer

Congrats on your first deal! I am hoping to be in your shoes in the coming months myself.

I have a bit to learn, right now I am honing in on financing. I believe financially I am in order, but I need to actually find a lender. My realtor (using the same one who helped me purchase my condo -Heritage Village) and she gave me two recommendations. I trust her,  but never feel comfortable taking those kind of recommendations ; always feel there's some sort of 'kick back...'

You state "see more property info in your profile," I don't see it???

What are your thoughts on Eastpointe in comparison to the area you are currently looking?

Christian Hall · Answer

Keri, thanks for the kind words! I see you're out in Ypsi. I'm an EMU grad! Small world. I'll definitely look into some investor meet ups and REA meetings around here and try to build my network with like-minded people. Good call! Best of luck with the SD-IRA!

Happy investing!

How should I finance my next Warren, Michigan property?

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