All Forum Posts by: Justin Brin

 You are correct. 

There a few other metros that should be in the list. 

In the list above I mostly entered locations I hear a lot and seem to be more papular for investors but I might be wrong and there might be other locations that I missed. 

 Maybe if you buy a few houses in a lower cost area like OH and split it to smaller units and do short-term rentals on all the units.

It's going to be a full time job managing all the units but I guess it's possible to reach that return rate of 4K a month but with lots of work. Most likely not passive at all.

@Tolulope Adewole Option #1: You can install a temporary door between the two units for 1-2 months just to get the financing you want. Tell the tenants it's temporary and you will give them a 5-10% discount on their rent for those 2 months the door will be there. Leave the door locked and only open it when the appraiser is coming to inspect the property. Then it will be appraised as a SFH.

How much does the value of the house change if it's a multi-unit or a single family?

Option #2: As mentioned above look into the title insurance and the title records of the property to figure out if you can sue someone for your losses in case they didn't inform you upfront that it's an illegal multi-family.

@Jordan B. Did you look into multi family?

If you sell all your rentals and do 1031 exchange into a multi family building will you earn more cashflow?

What will be your interest payment on the HELOC and for how many years they are giving you to pay it off?

 How is your cashflow on your current property?

What was the process you used for buying your first property ? 

For certain investors, it's acceptable if their investments don't generate immediate cash flow during the initial years, as long as the long-term appreciation increases their wealth.

For example, if you experience a negative cash flow of $2k annually for six years, that totals $144k However, if your property's value increases by $500k over the same six-year period, you're now $356k wealthier.

If your primary goal is to build wealth, then enduring a few years of negative cash flow might not be that bad. 

Another option is to consider long-distance investing and targeting areas with better cash flow potential.

Yes Detroit is also on option. How is the current economy in Detroit? 

 You are suggesting not to focus on main metro areas but secondary areas?