Whether the lender decides to do anything, and exactly what they decide to do depends on the lenders particular strategy, target ROI, risk tolerance, current interest rates, interest rate of subject mortgage loan, etc. 

Real estate agents, property managers, and contractors who specialize in your target market can save you time and money in the long run.

Therefore, any strategic/investing where you have a solid plan to get most/all of your capital back would be my target for this type of capital.

I’ve had to widen my search radius to smaller suburbs or target properties needing light cosmetic work to make the numbers work.Value-add opportunities: Adding amenities tenants love, like finished basements or upgraded kitchens, seems to justify rent premiums in this market.Navigating the competition:Be creative with financing: Seller financing or partnering with other investors has been helpful to secure deals when conventional offers didn’t cut it.Work with local agents and wholesalers: They often have their finger on the pulse of off-market opportunities, which is critical in a hot market.For those new to suburban Chicago investing, I’d say the key is finding the “sweet spot” neighborhoods—ones on the rise but not yet maxed out in price.

With $50k, you likely have enough to get started, especially if you target lower-cost markets or use a strategy like house hacking.

This deal showcased how strategic planning, targeted improvements, and a strong partnership could deliver impressive returns.

You may also want to consider the type of tenant you are targeting. 

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

Work backwards from your $300,000 annual target to monthly say $25,000 per month.  

Look for properties where you can add value with smart, targeted renovations rather than going overboard.Financing Strategy: Since you're aware of the leverage risks, keep your financing options flexible and conservative.