All Forum Posts by: Sarah Lorenz

Thanks, @Joshua B.  If I had bought small multi-family when I moved to A2 a few years back, I'd be retired now instead of doing live-in flips. Hindsight is 20/20. Welcome to BP, @Bethany Rogers I would say that duplexes are feasible for most people in the A2 market, and you can sometimes find houses that are currently single family but can be converted to duplexes due to the zoning or the ADU ordinance for owner-occupied homes. Anything larger than a duplex is harder to find and there is fierce competition from investors. There is also an interesting little short-term rental market in town. Lots to explore.

 I have started getting these requests ALL the time. They are a scam. I rent for a very high dollar per night average for special events, almost always to larger groups, so they are drawn to my listing. It is always a new traveler, and they never have the kind of realistic detail that legitimate booking requests have.   Now I just reply with a simple message that says I only book through the platform. They almost never reply. Although one did a few weeks later, and said that he was an aeronautical engineer who had been at sea for several weeks, but he still really wanted to bring his team to my rental for some shore time. Ha ha.  I work for a large organization and submit travel expense reports all the time. The entire organization has gone to a cashless and checkless system now, and all transactions are done with a credit card and an online expensing system. There is no need for this kind of convoluted weirdness. Definitely a scam, explained by a previous reply. I report these on my platform right away.

@Charles Kao Thanks, Charles!

So tell me if I understand those terms correctly. If you invest $25,000, you hope to make a 25% return, which would be $6250, hopefully in 11 months. And the preferred return means that you are guaranteed 9% but you'll hopefully get the 25%? Or that if there is any profit, you get first dibs on it to get your minimum of 9%, which would be $2250. And if there is profit over and above that, it may go up to the 25%? 

Or . . . I had another investor use the term "preferred return" and what he meant was that he was first guaranteed 9% on his $25,00000 ($2250), which was written in as part of the cost of the project for the use of his money, and then after that, profit was calculated and he took 25% of the total profit. 

Has anyone used Epic Property Management in Southgate, Michigan? I'm considering them for a new purchase. 

Thanks, @Chris Mason That's what I thought. So first close on the residential loan for my new primary, and then I'll be free to purchase an investment with an HML.

@Saravanan Saravanan Thanks. I'm primarily interested to know if the HML loan will show on my credit report and prevent my primary residence loan from going through.

I'm about to buy a new primary residence, but I'd like to also buy 1-2 flips with HML loans. Will that interfere?

You can build on it, but you'll probably need cash for construction. Any lender is going to require you to have title to the property, so you'd have to pay off the seller and wrap the cost into a construction loan. That will be for both REI lenders/hard money as well as residential construction.

I rented mine out last year for 32 days total. I told my neighbors so they wouldn’t be alarmed at seing strangers coming and going. They were fine with it. But it sounds like you’re talking a little greater frequency.