The low caps are higher priced for a reason and that reason won't change unless there is a dynamic crash in the market.Chances are you don't want all that goes with the low budget duplex and managing these places with low income to managers is a serious issue.You can afford to buy properties that have upside.

Regulations have changed, investor participation has changed, origination has changed, mortgage products have changed....the list goes on and on.

Congrats on an excellent build.....4 months You must have great subs :) Based on sale price that home would pull at least $28k in property taxes around here & we get constant tax objections by RE agents etc when planning a high end new build for resale.What product did you use for the flooring?

We also have an affordable interior designer that will be working with the contractor to help put together a plan for the rehab.

Looking at some of the other people posting from large metro areas, I see now why the 2% rule is so tough in Omaha... our rents are crazy cheap as housing is so affordable.

I settled on a condo unit for a few reasons: in my target town, an affluent college town, I cannot afford a house that would be a nice enough neighborhood to attract the type of tenant I want.

I am sure Detroit is a lot more affordable but like James and Josh have said, for the first investment it might be a stretch.

I'm sure Costco wouldn't be selling them if they weren't good products.

But there are also products with certain guaranteed min. returns, for example.So no, I wouldn't pay the bank $1000 (in interest, I assume) just to save $280.

That is 6k to move in, but if your tenant doesn't have 6k they probably cannot afford a $2,900/mo payment.