Metro Detroit-New investor-Hungry to dive in
New investor looking to build real estate investment business. Live in Metro Detroit, graduated from college in 2016, and just wrapped up my first year playing minor professional hockey. I got my real estate license in 2013 and have had burning passion for real estate ever since. I have not really worked as a real estate agent full time due to being out of the state for and only being home in the summers. However, I have helped my parents flip 1 house, and build a portfolio of currently 8 rental properties over the last four years. These rental units were all cash deals, and are yielding about 12-17% cash on cash ROI annually. This is being build as a form of retirement portfolio for my parents. They are all in the same neighborhood in a working class rental market (homes selling for 30-60k - renting for 800-1000). I feel as though it is time for me to start my own venture in real estate investing. There are so many aspects of the business that interest me, but first interest would be in flipping to create cash for long-term buy and hold rentals. My one concern with metro Detroit is while the rental returns great, I am a little skeptical of the appreciation in some of the lower class neighborhoods.
Secondly, I am for sure in the analysis paralysis phase. I have been spending day after day learning, reading, and listening to the Bigger Pockets podcast, but I am having a hard time jumping in. My initial concern is getting approved for a mortgage. I have some cash (enough for a down payment), however my income statements are very weak, which worries me for getting a loan. And from what I have gathered, the bank won't give you a loan on a property for 50k as an investment, so I don't want to spend all my cash on one deal and have no money for additional deals. Also, I have only exercised using the MLS to find deals and it is extremely competitive and I don't want to overpay, especially on my first deal! I tried one run of direct mail for my parents last year, but had no responses. So finding the deals has become more difficult.
I want to crawl before I walk, and walk before I run...But I want to run! It is my goal to become financially free by building a real estate business, and continue to pursue a career in Hockey.
Im looking forward this journey. Any advice or feedback would be appreciated greatly.
Thank you