All Forum Posts by: Andrew Fredrickson

You could buy a owner occupied home and rent it out. If you have no other mortgages the bank will let you buy an SFR and you can use it as a rental. Just be sure to register it after the first year as a rental. Keep in mind RE taxes will go up after this.

Two things. One - Is owner financing offered? If so, what terms, better than the bank? Two - Partner the deal. Find someone who's interested in it! PS, Send me a message with the details of this deal, that sounds like a nice return and I'm not too far from Springfield. 

There are a lot of other factors that come in to play in this question. 

Are you someone who has zero alternative income, and simply 10K in your checking account looking to spend it all? 

Do you have another source of income along with this 10K? Lenders want to see that it's not a risk that they give you money. The more money you're bringing in, the more money lenders will give, leaving you more opportunities to earn additional income at a staggering rate. 

What do your other financials look like? Debt-to-income ratio, credit score, 401K balance, etc. These are all going to be taken into account by the lender. 

You also need to think about your monthly taxes and insurance charges, along with management fees (even if you're paying yourself.). Even if you have a paid off property there are continual monthly expenses that add up.

Also, how are you buying into a 1/2 duplex? Is the owner trying to sell one half?

Are they renting the other half out already? If so you should ask to check their rent roll and see if they are continually getting tenants. 

Find a mentor in your area. Work with them to learn the business. 

PS, your first down payment will only be 3.5%! 

Chad, that sounds like a good return. Your numbers are right in line with what I look for in a hold rental. 

I am incredibly interested in investing in Detroit too, but in the same boat as a lot of people, am not familiar at all with the neighborhoods. @Sidel Murray do you have suggestions for property management by chance? 

I may not be the most qualified to answer your question, but I would suggest the Multi-Family route. I don't know the financials of either property you are looking at, but it seems to me the Multi-Family unit would bring more return than the Condo. Hope this helps!

I think to make it easier on yourself, and your tenants, adding another washer and dryer hookup on the second floor would make sense. Different markets are different, but I feel that each unit having their own laundry would be more enticing for potential renters.

One point = one percent of the loan amount.

$100K loan, three points would be $3K.