@Joe Kling May I ask why you would bash Detroit so quickly? Here come the Boo Birds..
Ask yourself first leaving Cali, what type weather in the winter are you willing to want to deal with lol. That may help you narrow down your market.. Seriously
If your leaving Cali, for buy, rehab,rent, refinance, repeat, there are a ton of investors here in the Midwest doing this and do not have a shortage of properties. Not saying particularly Detroit, Cleveland, Cincy, Columbus, Indy, is better than one or the other etc.. Any of these markets you will do very well if you put yourself in contact with the right people, build the right team, and be boots on the ground.
who finances homes in Detroit once your past your 4 or 10 mortgage slots.
and how does it go with appraisals... when you have so much wholesale activity.. where an investor buys a home for and in rehabbed etc 40k and then says its worth 80k... I would have to think lenders understand there are two values there one the real value and that's the 40k and the other a paper value the 80k since NO one would pay 80k for the home.
Are there portfolio lenders in Detroit allowing people to ramp up and own 20 to 50 homes or more.. will B2R or Colony lend in these areas ?
Once you get up into those numbers, I'd suggest looking at traditional commercial financing. There's a TON of lenders who will be happy to lend to do, especially large national banks.
Hey Travis
Thanks for chiming in. The issue Jay was pointing out is not merely in the number of units, but in where the units are located. A lot of banks are willing to make those commercial loans in a lot of areas, but might shy away from the Detroit Metro area. I've reached out to someone at B2R to see if they will lend in the area. I've heard feedback both ways at this point, so I want someone from the group to answer me directly.
I can't speak upon b2r or any big bank lenders as I have no experience with them. You must understand when you say "metro detroit" is not problematic areas for lending, and have values behind the houses and homes being sold for market value. A plane ticket out here will show you the difference.
A better question to clarify what your looking for is what is your goal? Cash flow and completely leveraging every penny through banks? How much do you need to be living comfortable and live in cali on the winter months? Can this be a achieved that with 10 units? Does it take 50? Maybe skip the homes and go into commercia lending with apartments on the westcoast. Just a thought
who finances homes in Detroit once your past your 4 or 10 mortgage slots.
and how does it go with appraisals... when you have so much wholesale activity.. where an investor buys a home for and in rehabbed etc 40k and then says its worth 80k... I would have to think lenders understand there are two values there one the real value and that's the 40k and the other a paper value the 80k since NO one would pay 80k for the home.
Are there portfolio lenders in Detroit allowing people to ramp up and own 20 to 50 homes or more.. will B2R or Colony lend in these areas ?
Once you get up into those numbers, I'd suggest looking at traditional commercial financing. There's a TON of lenders who will be happy to lend to do, especially large national banks.
Hey Travis
Thanks for chiming in. The issue Jay was pointing out is not merely in the number of units, but in where the units are located. A lot of banks are willing to make those commercial loans in a lot of areas, but might shy away from the Detroit Metro area. I've reached out to someone at B2R to see if they will lend in the area. I've heard feedback both ways at this point, so I want someone from the group to answer me directly.
I can't speak upon b2r or any big bank lenders as I have no experience with them. You must understand when you say "metro detroit" is not problematic areas for lending, and have values behind the houses and homes being sold for market value. A plane ticket out here will show you the difference.
A better question to clarify what your looking for is what is your goal? Cash flow and completely leveraging every penny through banks? How much do you need to be living comfortable and live in cali on the winter months? Can this be a achieved that with 10 units? Does it take 50? Maybe skip the homes and go into commercia lending with apartments on the westcoast. Just a thought
That's a thought Mike. One of the upsides of the BRRR method in the midwest/rust belt is the availability of product. Whether you're looking at apartments or SFR here in California, you're competing with a lot of big money for the product. BRRR appeals to me, especially in the rust belt, as it seems that if one is willing to put in the work to correctly appraise, renovate and rent the units, there is big money to be made. I know apartment complexes will appreciate here in SoCal, but i hate that negative cash flow position. That being said, the purpose of the post is to find out which market is best for me to direct my efforts, so if someone thinks that last statement of mine is wrong, I'm all ears.