Financing or cash? Redford, MI (Dearborn area, etc)

[Thomas Smith]

Hi all,

I am an out-of-state investor who previously lived in the area, and have owned a rental property in Dearborn, MI, for several years. I am now interested in expanding my holdings into Redford, MI or the surrounding area.

My question today is regarding whether most properties in the area are being purchased in cash, or if there are banks (lenders) in the area that are willing to lend on properties valued at about $60k. Considering a scenario of putting down 25% on such a property, you're looking at financing only about $45k - less than most banks are willing to work with in my experience. Considering that the majority of properties in this area are valued <<$100k, and out-of-state investing is not uncommon in the area, I'm curious whether lenders in the area are more willing to work with these low value loans on investment properties. I've also considered a cash purchase, and then move to do a cash-out refi once a tenant is in place, but I'd rather not tie up such a significant chunk of capital for the duration if its not necessary.

Any experience or suggestions from those familiar with the area would be greatly appreciated.

Thanks!

-Tom