How to fund investment property in Detroit

12 Replies

Hi everyone,

I am a new member to BiggerPockets and very new to real estate but I’m looking to start investing in Detroit. I bought my house about 4 years ago for about $57,000 and according to estimates from Zillow, Re/Max, and Chase, it’s current value is $85,000, $77,000, or $72,000, respectively. My question is does it make sense to try to get a home equity loan or line of credit or cash out refinance on my own home in order to fund an investment property? Should I wait until I’ve saved more cash? Or look into hard money lending? I am working with very little money to start but I am eager to get started. 

@Shantel Wimbush ,

It does make sense, as long as the next imvestment you make cash flows and is in a good location. I recommend doing it, if you need help I can help you. But in the meantime save up and come to REI meetups to meet people so you know how to find deals.

@Jamiel Strickland

Thanks for your response! I would love help with the process as I am unsure how and where to start. I have been trying to educate myself by listening to podcasts and reading some of the blogs on here but I know it would be especially helpful speaking to someone who is knowledgeable of the process. Are there any REI meetups that you would recommend? I am attending a networking event this evening on how to fix and flip in Detroit.

Hello @Shantel Wimbush ,

Welcome to BP I'm also a local investor from Detroit that actively in the market. I would recommend getting a HELOC so when you need the funds they are available and you can use those funds as you pay them off. My question to you, is what are your goals? What is your end-game that answer could help others give you better advice. You can reachout if you have more questions.

@Shantel Wimbush ,

I am hosting my first meet up be cool for you to come. Its good your educating yourself now its time to game plan. I would start off finding how much money you can put into marketing a month, pick which kind of marketing to start with, and then how much time you can put in every day. 

Originally posted by @Jamiel Strickland :

@Shantel Wimbush ,

I am hosting my first meet up be cool for you to come. Its good your educating yourself now its time to game plan. I would start off finding how much money you can put into marketing a month, pick which kind of marketing to start with, and then how much time you can put in every day. 

When and where  is your meet-up? I might be able to join.

Originally posted by @Jamiel Strickland :

@Keyonte Summers,

Hey, be nice if you can come, it's on July 20th at Cutz Lounge in Detroit. 

 I'm the nicest person by far anyone can vouch for it lol. Do you have a sign-up page so I can remind myself with the time and date? 

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