A property qualifies as Homestead for this exemption if an eligible owner files a Principal Residence Exemption (PRE): https://www.michigan.gov/taxes/0,4676,7-238-43535_43539-210891--,00.html#:~:text=Section%20211.7cc%20and%20211.7,purposes%20up%20to%2018%20mills.Many investors have gotten an ugly surprise when they bought a property that was a primary residence of the seller for the last 20 years.

Thank you.The general rule I go by, after flipping a ton of houses, is that I regret selling them now.If you buy them right (we’re an exception, as we buy at 7 to 15 cents on the dollar) and rehab them properly, you’ll get a ridiculous profit by keeping them, using strategies like the BRRRR method.Honestly, it doesn’t make much sense to sell them right away if you bought them right.

Absolute gold on your comment, thank you for adding it.

I was wrestling with a similar question when I bought my first rental property.

I started off profiting $1500/month as soon as I bought the houses (all within 2 or 3 years ago) vs only $300/month with normal rentals that rent to a family.

I am looking for the pot of gold at the end of the rainbow.

In 2020 I bought my first house 3 bedroom 1 bathroom and a 2 car detached garage for $175,000 and put a 10k downpayment on it and interest rate was 3.5%, in 2023 I decided to rent it out for $1350 mortage was $1106.62, in 2024 we raised the rent to $1450 and our mortage currently is $1144.76- I never put into account repair expenses, Capex, vacency until I read on rental investment properies book.

@Ram Gonzales - I bought a quad earlier this year and in addition to running the numbers as a larger multifamily property (income, expenses, NOI) I would also encourage you to look at the price/unit for triplexs and quads in the area to get a general sense of a comparative market approach.

That being said, I scrapped the idea and bought another rental property.One hack to consider, a colleague of mine finished a third floor, made the third floor the living room and kitchen and the second floor the two bedrooms because that scenario avoided the need for a second means of egress.

If the property you're thinking of tapping into equity for is the one you listed, you bought for $495 and you owe $450 on it, unless it has appreciated quite a bit I don't think you have enough equity in there to pull from.