All Forum Posts by: Billy Holt

Hey BP, 

Looking for advice on getting my first property in Roseville, Michigan. It's a side by side ranch duplex near Gratiot listed at $110k. Rents in the area are pretty much all at 700/unit. It's on a slab, no basement, new roof and new windows. Currently rented to long term tenants of 4 and 8 years (both smoke and are pretty messy) paying 700 and 750/mn. Based on my numbers, it should cash flow pretty well (a few hundred)

My real estate agent has some hesitations as he thinks rents will pretty much be capped at 700, it's not in the most desirable area (more of a rental area), and my tenants won't be A+ tenants for that price point. While I would love a place in a more desirable area, the numbers just don't work for places like Ferndale, Royal Oak, Livonia, and the like. 

Pros: low maintenance, low price tag, positive cashflow

Cons: rents capped at 700/mn, not going to bring in rock star tenants, not the most desirable area

Thanks for the help!

@Andrew Johnson, 

That's infinitely helpful, thanks for the response. I'll plan on checking out the lots this weekend. The pictures of the lots seem build-able (wooded but flat) but pictures can certainly be deceptive. Was a little worried about the HOA but the rules seem standard. Again, much appreciated!

I stumbled across several lots in rural Michigan (near Alpena) across the street from Lake Huron and down the road from another large sports lake, that are priced around $1,500. For that price I wouldn't be opposed to buying it to take a chance at the appreciation play or possibly developing it down the line (possibly even keeping for myself as a getaway). Taxes are $30/yr and there's an HOA fee of $242/yr (includes use of an indoor pool, private launches and a clubhouse). Association rules don't require me to build on the lot. What's the catch? Any red flags here?

http://www.realtor.com/realestateandhomes-detail/E...

Lot size example: 155x165x191x133

I'm looking to finance my first property. I've called 9 different lenders (mostly banks and credit unions) around their financing options and terms. When I tell them I'm looking to purchase a 2-4 unit multi-family that I plan to rent out, they all say I need a commercial loan. In the real estate books/blogs/pod casts I've scoured, it seems common to purchase a 4 unit and under rental using a conventional loan. 

What am I missing here? Do I really need a commercial loan? Am I speaking to the wrong lenders?  Is it possibly they don't know what they are talking about? 

Thanks for helping a beginner! If you have any suggestions of lenders in the Metro Detroit area, let me know! 

Hello BP,

I'm looking for recommendations on agents in the Metro Detroit area for multi family investing. The agents I've spoken with seem to deal primarily in SFR. Suggestions are greatly appreciated.