All Forum Posts by: Brandon Koster

What states does TD Bank lend in?  Is it just the 15 East Coast states they have other business in or will they lend HELOCs in other states?  My properties are in Michigan.

FYI: Lake Michigan Credit Union recently stopped doing HELOCs on rental properties.  

Lake Michigan Credit Union recently stopped doing HELOCs on rental properties.  I do a lot of business with them, but even I was unable to secure one during summer of 2021.

Found it on the MLS a few months ago. I am trying to build a network to better find off market deals but it is taking some time - I think it will come if I am patient.

We are super happy with the deal we just bought in Muskegon. Bought for 73K, rented for $1,025. Mortgage including tax and insurance is less than half of rent. Property was just renovated, all new plumbing and mechanicals, no work for us at all. Works out to 20% true cash on cash ROI.

I plan to keep buying deals like this in MKG as long as they are out there!!!

@Todd Bowen - I went with Lighthouse and they have been great!  I am still curious about United, but I will be using Lighthouse in Muskegon in the long term unless something big changes.

@Gina H. I don’t really pay attention to zip codes in Muskegon.  It is very “street-to-street”.  We just bought around the corner of Laketon and 6th.   

The Zillow tool that shows what you could get for rent at each property is pretty accurate.  I would add about 10% to that number if it is in good condition and you market well.  I work with property managers so they verify my gut estimate on rent.

We are being conservative and starting in the City of Muskegon.  If you really want to play a higher risk game you may be able to do even better in Muskegon Heights - but that is a whole different ballgame.  I feel fine about learning the area by staying in Muskegon on getting 20% cash-on-cash returns.  More power to the people who are getting 30% in Muskegon Heights - it’s just not where I am at right now.

Another vote for Muskegon.  We just got a 4 bedroom 2 bath rented for $1,025 (interest level indicated we could have probably got even more).  We paid $73K for the property in 2021.  It was ready to rent - all new mechanicals and plumbing - no rehab at all.  

If I had more cash right now I would be continuing to buy in Muskegon.  

Of these options I would go to Kzoo for cashflow and GR for appreciation.  Kzoo and Muskegon can - in a way - be thought of as exurbs of GR.  If GR prices continue to get more unaffordable for many people, they will be willing to commute 45 min for much more affordable housing.  

At least GR tolerated having tenants in it for a few months before certification.  I am going into Muskegon now and they seem more strict about nothing happening beforehand.  This could just be working with different PMs - but Muskegon PM says they are strict about it.