Purchase price: $105,000 Cash invested: $90,000 Property needed some serious rehab, from trees roots destroying the basement walls, to plumbing, electrical, to roofing, landscape.

@Sakib KhanRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Kyle Kulhanek Are you planning to transfer the property into an LLC owned by both individuals on title? 

With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

For (2), as properties age the rents you command decrease. 

Most banks won't want to come in with a line of credit that is second lien on the property.

Quote from @Casey Wilson: Hi there, I was wondering if any Detroit-metro experts from the PB community could offer advice on what areas in the Detroit-metro area might be worth exploring for rental properties (ranging from single family homes to 5+ unit apartment complexes).

“Broker” is a legal term that often requires standardized coursework and a state license. 

Buy and hold used as short term rental property.

This is an investment property.