Hey BP, I’m curious what other people’s thoughts are on my situation….I bought my first duplex in Michigan to house hack back in mid-June.

Hello @Michael CavitoloIf you can qualify for No PMI/Reduced MI that is definitely a go!

FHA, owner occupied3.5%Conventional, owner occupied 5%Conventional, non owner occupied, first investment25%Conventional, Multi Family Home, non owner occupied, experienced investor (having owned one property for 6 months+)20%Conventional, Single Family Home, non owner occupied, experienced investor (having owned one property for 6 months+)15%Second home, owner occupied10%Alternative qualifying loans for owner occupied (ex: bank statement loans which don't require your tax returns, great for self employed or multiple streams of income, no MI required)10%Alternative qualifying loans for non owner occupied (ex: DSCR which qualifies you based on the asset, great if DTI is an issue)20%

So I was thinking....does PMI/MI seem a bit ridiculous...I'm mean...tacking on an additional 300/350 bucks a month to do nothing but protect a lender of default from the borrower...Hear me out...your already qualifying for the loan...if your DTI and FICO support you getting debt...then perhaps something other than LTV should negate PMI/MI...maybe set the guidelines at an 800 FICO and no PMI/MI is warranted...dont you think this would "open the door"...pun intended...to price points that would otherwise disqualify a borrower because of payment with the additional PMI/MI included in the payment...HOW CAN THIS BE CHANGEDJust a thought...what say you??

Congratulations on your successful house hack.Two things come to mind.One, to answer your immediate question, you could easily invest $50,000 in a market like Michigan and generate a $700 a month positive cashflow after your mortgage including all expenses and a management company.

I'm trying to start a short term rental business and would like to buy my first one in Michigan until I'm more familiar with managing.

Most recent purchase was in Lansing, MI.

Hi BP Fam, I have been doing some market research and I have narrowed my potential markets down to the following five markets; DETROIT, MI,AKRON, OH, CLEVELAND, OH, MEMPHIS, TN, and MILWAUKEE, WI.

Mi MichaelThanks for the response!

This is in Michigan