Buy-and-Hold Success in South Lyon (Metro Detroit) MI

[Joshua B.]

Bought an all-brick 2700 sq ft triplex in South Lyon, Michigan on land contract this week. Not a home run, but a solid single with the chance to stretch it into a double if the area appreciates. Current rents are a hair under $2,000/month. Don't wanna disclose the terms, but it beats the 1% rule and has a 5-year balloon with very reasonable monthly payments, so it will cash flow just fine. More of an appreciation play, though, as South Lyon is growing very quickly and I think will continue to do so. Lots of big nice houses being built, and South Lyon has a nice little downtown. Hopefully the surrounding development encourages more of a revitalization downtown. 

Once the balloon term ends, I think I should have a few good options (keep it, cash out refi where I can pull out more than I have into it, or just sell). This is my first deal for 2018 and now puts me at 7 units since starting last year. Hoping to hit 40 units in A/B+ areas by the time I'm 40. 6 more years to go.