There are definitely some decent spots and good people there, but the quality of tenants is lower and you should not bank on appreciation.

Thanks Jerryll Noorden So essentially you’re getting money back from the contractor for work he didn’t perform, so your rehab costs will be lower than the $120k and actually closer to $95k once you get that money back?

What is higher or lower on yours? 

Typically the higher the % the lower chance property has for appreciation.

However, if it is lower than 5% you should pay the minimum and use the money to invest.

So here it goes:1) Single with no wife or children: House hack with an FHA loan, lower down payment which lets you be able to use the other cash left to leverage for another property. 2) Single but engaged or Married with no children: House hack again with an FHA loan, but move out once the 1 year stay requirement is over, and rent the other unit out.

We will be starting out at a lower late to beat the competition and earn our business going forward.

Sometimes you can get more calls just by lowering your price the equivalent 5-8% (depending on expected tenant longevity).

Primary you can cash out up to 80% but it always to stay lower and see what will be difference in interest rate.

It adds about $10k in interest costs in the first year versus the lower rate ARM, and interest cost down from there every year I keep the loan in place.