All Forum Posts by: Daniel Klebba

Thanks for the input. The SFR ARV is probably around $80 or so based on the $8k that would need to go into it. While there is no space readily available that can be converted, and addition would be possible. I haven't scouted that cost yet however the ARV if it were a 3 bed room would be about $125-$130k. I would guess an extra bedroom would run about $25-$30k to have completed. The ARV of the duplex would be minimal which is my hesitation. There are a number to duplexes in the area, one similar in layout but nicer condition is going for $90k. I feel the risk/reward is much better on the SFR.

Quick scenario analysis: Given these two options, which would you go for first assuming you have the ability to act on one right away. Option 1: Fully rented duplex listed for $75k in a good school district. Total monthly rent is $1300 and the cash flow would be about $300/month total. The units are in decent rentable condition but could use some updating. Cash out of pocket is $15k down and the property will probably need about $2000-$3000 in repairs. Option 2: A foreclosed SFR in a great school district listed for $65k. Two bedroom one bath. The house needs a good amount of work probably $8,000. When rented we could probably get $1100/month with a cash flow of about $460/month. A comparable home sold in the same area for $45k not long ago. Cash out of pocket would be around $18k. My debate is with the same out of pocket expense do I go for the guaranteed cash flow in the duplex or roll the dice, fix up the forclosure to get a higher cash flow and have a better chance at an increased home value? Both investments I'd plan to buy and hold. Thanks, Dan

Thanks! I just got done reading Rich Dad, Poor Dad and for some reason it sounded as though there was a way around the 20%. It didn't make any sense to me but I figured it would be good to see if anyone knew something I didn't!

How much money do you typically put down on an investment property? If your giving a dollar value please give me an idea of the purchase price. Most banks are requiring 20-25% in Michigan but I'm not sure it's the best use of funds. Thanks, Dan

Earlier this year when I was looking into it most banks/credit unions required 20-25% down so that is what I've been planning for. I just wasn't sure if there was some sort of trick where you put bid 80% of asking on a foreclosure, put 10% down on and pay PMI for a few months until you can refinance. Thoughts?

In my research lately I am hearing a lot of folks say they are putting less than 20% down to acquire their investment property. While I realize it is best to keep as much cash as you can to invest else where, why isn't anyone talking about PMI figuring into their cash flow? Also how is PMI figured exactly? Thanks, Dan

Can you send me the info on the property?

thank you! I'll have to look it up!

Are there any wholesalers in the metro Detroit area? I'm interested to see what you may have. Thanks, Dan

I am a beginner in Brighton Michigan and I'm looking for a local mentor/ real estate group to join. I'm interested in multi family, duplexes, or quads. I'm considering the suburbs of Lansing and Detroit at the moment. Anyone interested in meeting up for coffee? Thanks, Dan