Sale Price$171,000 - $55,000 (Rehab) - $13,680 (8% fees) - $40,000 (profit) = $62,320 MAOFrom talking to other investors and doing research, typically a Novation allow more money to the seller, correct? 

Typical equity build up time is 5 years, depending on your market.But can you purchase another rental using your own capital?

I recall reading about it in CNBC...The quest for solid returns in our current market might feel daunting with interest rates where they are, but the good news is.. if you find the right deal and set clear criteria.. like a minimum cash flow target, or a plan for eventual refinancing.. your numbers can still work out.

I’ve already put down a $2,000 earnest deposit and paid for the inspection and appraisal.This event is unprecedented in the area, as the area is typically low in violence and considered very safe.

How much upfront costs are typically involved in a project before you know if it's a viable project to pursue? 

We shall see but it may all be just typical yap yap.

@Mattin Hosh first, most cities in Metro Detroit have some type of rental property inspection every 2-3 years.It's not really a big deal 99% of the time - especially for owners who are NOT slumlords:)Also, a quick Google search will show that several states/cities are passing/considering similar legislation.One of the biggest mistakes we see newer investors making is NOT properly understanding Neighborhood/Property/Tenant Classes and naively assuming that any rental they buy will deliver Class A results.Read our copy & paste thoughts below and DM us if you'd like to dicuss more about the Detroit market:)-------------------------------------------------------------------------------------------------------Recommend 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?

Mortgages for LLCs with personal credit under 680 are tough and expensive, and under 640 are typically not really economically practical for the borrower. 

It is not typical that you will find SF deal after deal, and if you are actively marketing for distressed sellers many...most...will want cash sales.

It is typically lower than cash-on-cash and you can put it somewhere around 6% conservatively.