Is anyone considered equity positions in Detroit downtown when comes to apartments or rehabs. The city demands are pointing north of  2.00 a sq foot now that  luxury brand is making way. This can be send here off Wood...

So let's see, for the duplex:$16K purchase + $20K rehab = $36KRents: $1300 * 12 * 50% = $7,800$7,800 / $36K = 21% cap rate If $20K was the total then it's 39% cap rate.Regardless of the scenario, I can say pretty confidently you're not going to pay $20K a door for a commerical multifamily property and get $1,300 a month (collected) in rent.Others can chime in they think it's a viable strategy.

The latest brillant idea the township with that highest fee just passed, is sprinkler systems in all homes being convert to a  rental, commerical buildings too...

Also, since capital preservation is key, the loan arrangement should call for interest-only payment.The major drawback is that you need to have a pipeline becuase, like any loan, you will be paying a per diem.These types of arrangements are best put together using an attorney intimate with commerical finance.There are many ways this can be accomplished.

I'd hire some Commerical Developers to work for me.

@Markiem Jenkins  as a bright young man with a college degree ... have you thought of getting your RE license and going to work for a commerical broker.. do your apprenticeship earn while you learn... so that by the time your 35 ish your knocking down 500k a year plus...

I got mine working for a multi-family/commerical company out of my masters program.

a good commerical broker can probaby explain this over a beer or coffee frankly not that complicatedyou have rent you have runnning cost and you have acquasition.. cost of capital. although MF right now is quite frothy.. and Ian Ippottio can out with a very good blog on it today..

the llc won't qualify for the loan, but most banks will allow a commerical loan to be in the llc's name as logn as you personally guarantee it

But best of all, it didn't hurt you during the hold period because you utilized this new freebie deduction each year to bring your taxable income down to $0.Note: this is not a relevant strategy if you purchase property that is likely to produce high amounts of net income after depreciation every year (NNN, Commerical, Large Apartments, Short-Term Rentals).