It sat for a bit and the price was lowered to 46k so I toured the house and made an offer of 36k after adding up renovation cost in my head.

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.

It is better to lower the price and shift the lease ending date late spring. 

I decided to take a lower CoCr for stable, high quality tenants and have zero regrets.

The area has seen growth in both the residential and rental markets, making it a potentially lucrative investment.For financing, you can explore options like conventional loans, FHA loans (for owner-occupied properties), or even local programs that might offer lower down payments for investment properties.

I am looking to join a mentorship program to help lower my learning curve and until I find it, I am educating myself with books, as well as YouTube University and great advice from the BiggerPockets community.I do work full-time in a career that I love and is very rewarding, but I also know I won't attain my goals with my current job.

I lowered the price down to $700 a month and is sitting at the lowest priced 2 bedroom unit in the neighborhood.

Here are some financing options to consider:HELOC or Cash-Out Refi on Another Property – If you or your mom have equity elsewhere, this could be a more flexible and lower-interest option.Business Line of Credit – Since the property is in an LLC, you might qualify for a business LOC, which could cover construction costs.Private Money Lender – If you’re okay with 12-15% rates, a private lender could fund this as a short-term loan, especially if the guesthouse will generate strong income.Construction Loan – Some lenders offer short-term construction financing, which converts to a longer-term mortgage once completed.Seller/Partner Financing – Bringing in an investor or structuring a joint venture with someone willing to fund the build in exchange for a share of the income.Credit Card Stacking or Unsecured Business Loans – Riskier but could work if you need to bridge a gap until the unit starts cash flowing.Would love to hear more details—especially your timeline and expected rental income.

You’d also make all future capital gains at least partially taxable instead of tax exempt by converting your primary to a rental.

With growing tourism and lower competition, it’s a great way to maximize cash flow.- Creative Financing: Partnering with other investors, seller financing, or using HELOCs can help scale your portfolio faster while preserving your capital.- Land Development: Got an eye for raw land?