All Forum Posts by: Maxim S.

Ypsilanti is affordable given what you have listed. 3/1 ranch homes from the 50’s and 60’s are available for $95k-140k depending on the area and rent for around $1250-$1300 once again depending on the area and condition of the house.  

There are newer, larger  3/2 homes (early 2000s) south and north of Ypsilanti that are in the low 200s.  

Nobody can tell you what you should do. That's a very personal decision based on a lot of factors you can't fully communicate. But here are some initial thoughts.

2-2.5 years is not a long time. Buying a home with the idea of selling it (at a profit) is more of a gamble than a strategy unless you buy something with the intention of doing a live-in flip. That means renovating while you live there. Trust me, this is extremely taxing on your family (I've done a live in reno). 

But if you're simply trying to buy and hold for appreciation for a 2-2.5 year period of time, it's a bit risky IMO. What if you can't sell the house for more than you paid? I suppose you could rent it, sure. But what would you do about a down payment for your new primary house in NC? Would you rent again? Not sure if that would make a ton of sense.

If you know you're going to move in just a couple years, I'd save as much as you can now. If you're itching to get into real estate investing, buy a modest home when you move to NC so you have cash left over to invest. 

Hi Maxim. Good questions and good place to ask them. 

With only the information you've given my short answer would be to find a good deal on a property that needs a little work. Use the $30k as the down payment and to fix it up while you live there. Take advantage of the low rate environment to lock in a low interest rate on a 30 year mortgage. The property could be a SFH that you live in, fix up while you're there and then sell after 2 years+ (are you aware of the tax advantages with this strategy?). I would make sure when you buy that the math works so that if the market goes the other way and you can't sell for a profit, that you can rent the property and generate monthly cash flow.

You could also execute a similar strategy in a duplex/triplex/quad. Live in one unit, rent out the others and then sell the property or rent your old unit when you move. To me this is the best strategy if you have this flexibility. However, finding a good deal on a multi-unit in this market will be tough. If you are interested in this approach I have a duplex in Ypsi that may work.

To answer your questions completely I would need more information. Such as:

1) Is buying a duplex and living in one side an option? (do you have a family?) - Yes, it's an option.

2) Will you be comfortable owning a rental in Michigan if you do move to SC? - Absolutely.

3) Do you have the appropriate team in place to rehab (for flip or to get rent ready)? - No. But I clearly understand that I will need one.

4) What is your near and long term goals with real estate investing? Are you wanting to flip to generate $ now or are you wanting to invest for cash flow? - Cash flow investing seems more appealing to me.

5) Are you comfortable with analyzing properties to find a good deal? - Yes. After I digest all the received advises and understand better the strategy for the next 2-2.5 years I will be looking for deals.

6) Do you have a good realtor? - No. But I understand that I will need one. 

7) Would you manage the property yourself? - In case of duplex/triplex - yes, while I am living there. If I move out of MI, then the answer will be no.

etc etc etc

Hopefully this helps some. I'm in the area of you want to get together to chat more. - Sure. It would be great to chat.

Good Luck!