Newbie to REI from Metro Detroit

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Newbie to REI from Metro Detroit

Jonathan Postema
Member since 2019 · 2 posts · 2 votes

Novice REI and brand new biggerpockets member here. I am in my early thirties and I plan to get my first investment property within the year. I have a full time job as an attorney (not real estate) and this would be, at least initially, a "side hustle". If things go well I may consider investing more time.


Right now I am in the process of educating myself on REI and finding my investment niche. I plan on listening to the biggerpockets podcasts, reading their UBG, and searching for other podcasts and resources to find more clarity on how I would like to enter the REI world. So far I have thought about starting out with everything from single family units, 2-4 family units, mobile homes, and storage units.

As far as questions, how did you go about finding your REI niche?

Also, what resources would consider a must read/listen to someone considering their first REI investment?

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Zachary Kucharek
Member since 2019 · 11 posts · 4 votes
6y

@Jonathan Postema well it sounds like you have a plan laid out. And just from reading that, it also sounds like the next step is seeing what rents go for in the area so look into that as soon as you can to find out if that is a feasible possibility to cover the mortgage monthly payment you posted. Then you can start moving on that, while looking into your next step of a SFH or MFH for you and significant other!

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  • Edgar Butler
    Real Estate Agent · Metro Detroit, MI · Member since 2019 · 19 posts · 12 votes
    6y

    @Jonathan Postema

    I'm somewhat in the same boat as you. I am a brand new real estate agent in Metro Detroit, and plan on buying my first investment property within the year as well. So far my favorite read has been BRRRR by David Greene. It's helped me narrow my focus to SFH 2-4 units or large SFH in areas where I can house hack by the room. Good luck, and let's keep in touch.

    2Reply
  • Paul Bommarito
    Rental Property Investor · Detroit, MI · Member since 2018 · 47 posts · 36 votes
    6y

    @Jonathan Postema
    Welcome to BP and congrats on getting started! There are a lot of good questions for you to think about, but I would also encourage you not to get stuck in information overload or analysis paralysis. I struggled with that for a bit and it was holding us back from pulling the trigger. Some questions to think about though:

    1. Do you want to do rehabs? Either personally or with a contractor

    2. Are you interested in living in the same building as your tenants and house hacking? BP just released The House Hacking strategy book by @Craig Curelop, who is the reason my wife and I bought our 4 unit to house hack

    3. How active do you want to be in the investment? Do you want to be a landlord/manage a contractor etc?

    4. What is your ultimate goal with REÍ and with that goal in mind, what is the best step for you to get there?

    It is very easy to get overwhelmed with all the information out there and different podcasts available. I would encourage you to read Brandon Turner’s book on Rental Properties, which gives a pretty good overview of most investing niches, and then determine what is for you. Feel free to PM me if you want to chat more or meetup for coffee, I am in metro Detroit as well.


    2Reply
  • Zachary Kucharek
    Member since 2019 · 11 posts · 4 votes
    6y

    Hey @Jonathan Postema, I am also new to REI and I am saving slowly for my first downpayment while also dealing with trying to attack student loans head on. I am currently in Mid Michigan, but have lived for a couple years post grad in Royal Oak, MI. Metro Detroit is a lot of fun and there are a ton of properties down that way so you are in a good spot as I'm sure you know with a lot of opportunity!

    I second @Edgar Butler and his response about looking at possible house hacks if that is within your comfort zone, as it will ease you into the investing world while also reducing your living expenses (most peoples largest expense) so that you can use that extra money from paying less for living toward investing more in future REI, reserves in case something goes wrong with property, or building your retirement account. This is something I am looking into and want to get a MFH with 2-4 units in the future when I save up a large enough downpayment. Look up some episodes on BiggerPockets about House hacking.

    Best of luck with everything Both of you guys!

    1Reply
  • Jonathan Postema
    OP
    Member since 2019 · 2 posts · 2 votes
    6y

    Thanks for the replies @Edgar Butler, @Paul Bommarito and @Zachary Kucharek. After some thought I think I have narrowed down my initial strategy to renting my current 3BR 1B in Pleasant Ridge in about a years time. I will either have another single family house I will be staying in (possibly with significant other) or, if that doesn't work out, then I will try to find a multi-family unit and do the home-hack strategy. Lots to learn between now and then, though.

    My major concern is whether I can get enough rent to cover my mortgage which is around 1600 a month. I would hope to get 1800, or 1900 but I am not quite sure on what 3BR 1B rentals are going for in PR. I have a finished basement, nice backyard with a deck and a 2-car detached garage that is being redone at the moment.

    I appreciate your insight! 

    0Reply
  • Zachary Kucharek
    Member since 2019 · 11 posts · 4 votes
    6y

    @Jonathan Postema well it sounds like you have a plan laid out. And just from reading that, it also sounds like the next step is seeing what rents go for in the area so look into that as soon as you can to find out if that is a feasible possibility to cover the mortgage monthly payment you posted. Then you can start moving on that, while looking into your next step of a SFH or MFH for you and significant other!

    2Reply
  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    6y

    @Jonathan Postema

    Welcome to Bigger Pockets!

    This is a great place to learn and network. A lot of forum members are very knowledgeable in their respective fields related to real estate investing, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.

    The site has quite a few tools that can be helpful for new members. I like the search features: https://www.biggerpockets.com/search

    Alerts can be really helpful too: http://www.biggerpockets.com/alerts

    There are a few self-contained guides that you can access here: https://www.biggerpockets.com/guides

    1Reply
  • Paul Bommarito
    Rental Property Investor · Detroit, MI · Member since 2018 · 47 posts · 36 votes
    6y

    Second @Zachary Kucharek, check out https://www.rentometer.com/, Zillow, Apartments.com, etc... and see if you can find some comps for by the room rents. Sounds like a nice house. I am not familiar with renting by the room though and what other regulations there are around it if any, so I would brush up on that on BP as well and see if there are any local laws to be aware of.

    Just realized you did not mention by the room. But you could look at both by itself to one tenant/tenant group/family, and by the room to individual tenants, and see which one would net you more.

    2Reply
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