They agreed and we have signed a lease for the total rent of $3100.

That is totally reasonable but you have to want it.

Claremont: Ours: 380 sq ft garage conversion : $1,850 p/ month Garage conversions all in: $100k to $110k (total ready to rent). 

Forgot to mention we have pricing with ZERO points in many cases.

If you do it right, it’s arguably the best market to invest.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 5-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.

The down payment is based off the total adjusted acquisition cost – the purchase price plus the cost of renovations.

I’ve also been in touch with a design team, and they’re quoting a fee of 10% of the total construction cost.

For example, there are a grand total of a whopping 34 multi family properties currently on market for under $500k. 

Lease starts December 1, 2024 and ends March 31, 2026 for a total of 16 months.Hope this helps!

The answer is yes, 2nd lien DSCR loans exist and more than one lender can do them, but you would probably have to up your credit score to be able to get up to a total of 75% ltv between 1st and second lienOtherwise, you would have to get lucky on a favorable appraisal.