All Forum Posts by: Ethan Kohler

 Net sale proceeds after closing cost and margate would like be roughly $100k. 

Rental cash flow would be around $400 / month

 May rent for $2,200-2,400, but uncertain on demand. However, there seem to be quite a few foreign business personal traveling to our area. A rental house in this range might make a little more sense for situation like that. 

Mortgage, taxes, and insurance are just over $1500 / month. There would of course be other expense factors to add in though. 

Currently in North Novi / Walled Lake area

I'm likely moving in next 8-10 months

Personal home appreciated roughly 80-100k since purchased in 2017. 

Current low interest rate. 

Any general advice relative to this market? Should I sell my house and take the appreciation if I can still get it, or try to keep my house (3 BR, 1.5 bath) as rental property if I can swing it financially? 

Any input appreciated. Curious to thoughts on trajectory of this area. 

 I appreciate the input @Anthony L Amos Jr. I wish I had done that initially instead of renting early on, but good to start sometime. 

My goal was, and still may be, to buy a 2-4 unit by end of 2023. However, I can't (more accurately don't really want to) house hack a smallish unit with 1 kid and another on the way. So, I'm trying to get that house upgrade the wife wants, while not just taking it on as massive liability. 

Maybe HEL on current residence for down payment on new primary residence. Buy value add as our next residence, utilizing 203k loan with HEL as down payment. Then mid-term or long-term rent our current residence. Trying to get creative...

 Thanks Nicholas. Are you eluding to repeating this process in 2 years with this next property I buying as my new primary residence, moving out again and also turning that to a rental? 

The consensus I have come to understand is that finding good deals is crucial, then adding value to leverage your equity and repeat the process. 

As it turns out, its tough to also work in the primary home that the wife wants with long-term suitability for two kids. I'll have to balance it, but we'll want to be in this next primary residence for 10+ years. 

 Thanks Eliott. I have some contacts, but yes, I'm realizing I need a good agent/investor and lender to establish a good foundation to start. I figure local to me in Detroit if recommendations. I was also going to browse the network here.  

This would not be traditional house hacking, but maybe a cousin to it... I'm curious if many people have found success in moving to a new primary residence, but keeping their current house as a first rental property. Is it viable to take out a home equity loan on the original house to use as down payment for the new house? Of course, one wouldn't have the sale proceeds to use as down payment in this case. 

I purchased my current home in 2017, and have quite a decent interest rate and a fair amount of equity.  Maybe there are many specific details that would impact this, but would appreciate any insight into this strategy as whole. Additionally given current interest rates. 

Thanks All

Thanks Connor. In Michigan, assessed value is set at 50% of market value. So I believe, the assessed value would go up to about 600K from 212K. Given that the current 10k in annual taxes equates to about a 5% tax rate, I would think annual taxes would jump to 30k annually. But maybe I'm missing some other variables. 

Looking at a mixed use office building in the older part of a nice, more affluent downtown area, I'm curious to know what one may be looking at in terms of an increase in property taxes. As I understand, property taxes only go up a max of 5% annually , until the building is sold or renovated significantly, at which the cap is removed. New at this, so how can one reasonably estimate? I know I may be missing key information here but:

B-3 tenant retail/office building 7,000SF. Class C, built in 1883 and renovated in 2004. Listed at 1.4M and then dropped to 1.2M. 

Total assessment: $212,000. Current taxes around $10K annually. 

How drastically could these go up?

Thanks All