All Forum Posts by: Casity Kao

@Pat Jackson Happens all the time but keep in mind you need to factor in how the interest is calculated. 4.5% on a HELOC calculated at a 30 year amortization is actually higher interest than somebody charging 15% simple interest compounded monthly. Be careful of this.

@Jack B.   I highly doubt you have a non recourse loan on your primary residence.  I would double check with your lender.

@Mike Williams  Hi Mike,

I think the fastest way for you to get 4,000 monthly income off 100k is to buy rentals under market value, and then find a bank that will allow you to cash out refinance, preferably with no appraisal, just electronic value under a year. For example in my market we have a bank that does lines of credits for high credit worthy individuals off of flips and rentals up to 75-80% of value even if you just purchased the property. So for example a duplex we recently purchased for $131,000, that is renting for $2000 we put 10,000 of capex into the home and the bank had an electronic value of 169k. After a site visit which we did not pay for to get a BPO, the bank reassessed the value at 189k and we were able to take out all the money we put for the down payment and capital improvements and an additional 10,000 that we used to buy another investment. This will allow you to use the BRRR strategy. If you buy turnkey, you could also buy 2-4 properties with 100k and use that cashflow to buy more properties as well but you will run out of money to buy properties because the down payment will still be in the property. If you'd like to invest in the Michigan market, we have invested throughout the state so feel free to reach out.

@Victoria Gambardella

If you go to significantly lower cost markets you run the risk of having more competition to finding properties because more people can afford them. In addition to that but in the 50,000 price range, when you factor in Capex and the type of tenant you will get I personally think there is not a cost savings. Locally here to West Michigan I can tell you Muskegon, MI is a market that is turning around quickly as it was once an area that was thriving, so it has well built homes and one of the most beautiful beaches in the state. My suggestion would be to invest in areas you know or you have an agent/friend/investor/relative or anyone you trust to vet the market. We personally invest in rentals in the 110-160k range, in particular duplexes because it seems to be a good range to attract high credit quality renters and often times we convert our renters into clients down the road when they are looking for a home or settling down.

Thank for all your inputs! I will have to check with the city soon. 

We have a single family home with two levels and will rent out to two tenants. Gas electricity and water are all one meter. Utilities will be under our name and we will bill tenants. Lower level is 950sqft and upper level is 575sqft. The split will be 60% for lower and 40% for upper. How can we legally include a clause into the rental contract to bill both tenants? Any recommendations for legal terminology we should be using is greatly appreciated!