All Forum Posts by: Mike Watson

@Brandon Jurczyszyn - The average house price is rising thanks to an increase in new residential development. Primarily the kind that involves blowing out old $150k 1000 sq ft houses and replacing them with mammoth $500k houses over double the size. Assuming this continues to happen, we should see the values of all our homes in RO continue to uptick. My house alone has gone up 15-20% in value in 1.5 years. 

I would also recommend taking a look at how well the homes held up in value during the recession. Although everyone took a hit, many homes in RO kept values relatively close to where they were at pre-recession. Perhaps the appreciation starts to sputter - based on what I've seen over time, I have less concern about the bottom dropping out on values in my city.

@Marian Smith - The hypothetical situation would involve the group owning what is my current residence. We've been considering properties that require a lot of work so we would potential turn my current primary into the group understanding that it would be treated the same as any other property we would purchase. The team would own any responsibility. 

Hello BiggerPockets!

My name is Mike Watson and I'm a new BiggerPockets member living in Royal Oak, MI. My goals including buy and hold real estate investing locally and I'm 2-3 months away from purchasing my first investment. When I'm not reading all of your great content within the forums and running 50 different BP calculators a day, I'm working in fintech in downtown Detroit, MI.

Looking forward to connecting with many like-minded individuals! Have a great day!

Hello BiggerPockets!

I'm currently a part of a group of 3 associates looking at consolidating our efforts and buying SFH rental properties.

Additionally, I am a homeowner in an extremely hot market for both rental AND purchase (20% increase on my value in the last year and rents are currently going for about 70% above my monthly payment all in). I'm open to the potential of moving but I'm currently not looking for myself. 

My question:

Has anyone ever worked with a group/structured a deal where - putting yourself in my shoes here - you leveraged the buying power of a group AND the equity in a primary mortgage to:

1. Buy a new property for my primary residence
2. Start renting my existing property under the guidance/with cash flow going to the group

The reality is that my existing property is well-maintained and turn-key rental ready but my DTI may not warrant buying a new property solo. I want to find a fair way where my counterparts could potential put cash down (in a fair way) to "buy in" to the rental piece while not losing out on gained equity.

I haven't seen much with this type of scenario so if anyone has thoughts or have lived through something like this I would love to hear about it! If there are any points of clarity that would help with this, please let me know this as well!