Investing out of state as a rookie is a major mistake, like starting a land war in Asia.

Hi Timothy,We have a phenomenal BRRRR product. 

Even if you got the 130k valuation, between the HM loan and the refinance the lender just took the majority of the equity in form of lender fees, appraisal costs, and interest.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I've had lenders offer products I didn't know were out there for buying certain types of properties as well.

.- It's very difficult to argue about travel being a business expense if you're just going to look at properties, I would argue against it in a majority of cases.- Depends on what you're doing specifically, but usually I'd recommend getting an EIN at least to give access to business bank accounts- Repeating #1, if you're going to a property and 100% of your time is spent doing renovations and the like, sure, but if any of it is for personal benefit, that'd be disallowed.

What we run into is even if there are no major repairs for the year; you have a 15% management fee; $500+ in setup an inspection fees annually, and $2500 in make readys with basic repairs you are looking at nearly $4k in annual, basic costs for a unit which brings $6k in gross rent annually. 

Moreover, the government has made it very clear that it wants to attract foreign investment and a measure like that would be totally counter-productive and downright dangerous and negative for the country and it's the economy.

You will owe monthly payments until you fix the property up, rent it out, and refinance to a more traditional 30 year fixed rate product. 

However, in the vast majority of cases they won't even investigate the claims telling the victim to proceed in civil court on their own.