All Forum Posts by: Carson M.

To bounce off what

said, the suburbs do not have the same vibe that the actual city does. I live in a very nice neighborhood between 9 and a half and 10 mile, less than 2 miles from the city limit, yet average income in my little city is roughly $110,000. Even pockets within the city are not all that bad. True, the bad out weighs the good, but I went to high school in Detroit in a neighborhood where old stone and brick homes are selling for $80k-$100k, very beautiful homes that are well maintained. Sherman forest/ parts of the university neighborhood if any reader is familiar.

Did not mean to create a new thread. Any one know how to delete a topic?

Did not mean to create a new thread. Any one know how to delete it?

From studying rental prices and quality in my local market, I believe it depends a lot on the upper rental prices for an area and where your property currently stands. Say, in an area the max rent you see for a 3/1 home is $1000. These homes have new kitchens, bath, paint, ect. If your home currently rents for $900 without these renovations, then you can only assume that with top end finishes you can only get $1000. If you don't see any or many rents above 1000, then you cannot assume a renter will choose your home, therefore you need to decide if the reno costs are worth an extra $100 to lure in a tenet.

If in the situation above, your home currently rents for $700, then maybe there is enough room for a price increase to justify a renovation.

I think another overlooked factor is even if you're in that $900 rental range and the market will only bare a $1000 rent, by upgrading you could potentially appeal to more higher end tenants who will appreciate the updates, therefore less maintenance and vacancy.

Hey, @Anthony Hayes

, I'm in a pretty similar boat to you. I'm currently a sophomore finance major at MSU from NW Detroit, applying to the business school in the spring. A word of advice is to start contacting banks about a mortgage ASAP, as it will definitely be tough to acquire pre approval with only a year's worth of salary. I've had a landscaping company the past three years and have difficulty going the conventional route.

I believe there will always be 1)distressed homes in good markets and 2)motivated sellers that are willing to sell their home (for many reasons) below market price. I see that most flips try and capitalize on these opportunities.

With the crash, prices were hit so hard that one could easily find homes selling for a discount readily via MLS- something that requires very little work to access. A realtor or simply realtor.com would suffice for finding deals this way.

I think that now, these discounted deals are not popping up on MLS as much because the "average" home for sale is priced reflecting the upswing of appreciated seen over these past few years. Deals will always be there, they just wont be as easy to find as the time when you could go on to realtor.com and find multiple deals where the numbers work. I think in order to find a pipeline of these deals, one needs to turn to marketing and reaching out to sellers that are willing to sell at a discount.

@Michael Dundon

, I would definitely be up for meeting up sometime. I would very much like to pick your brain on the Oak Park market and the niche you've found there, and setting up and seeking out private lending.

I am a full time student at MSU, so time is pretty tight these next few weeks with finals and my landscaping work winding down. If you would like, feel free to email me at [email protected] and we can figure out a time to meet up. I'll be home for Christmas break mid December to early January. Thanks, Carson

Thanks, Bill. The credit part is difficult due to only being issued a $1500 limit on my Visa card less than a year ago, and being unable to get a store credit yard, such as a home depot card, due to a low credit score. It is not that I have any late payments or balance, just a lack of limit and history. I need to try again to up my limit and apply for a second card.

@Wendell De Guzman

I appreciate your response. As far as private lenders- for a buy and hold property, how can one benefit from such a deal? I have enough reserves to buy a so so home in cash, but would rather utilize leverage. The way I see private lending deals for rentals are

1) a 100K house you need 50K from a lender, they give you the 50K in return for 50% ownership. How can I capitalize off their money if I cannot use their money to get a better rate of return on my behalf?

2) Come to an annuity like agreement. Maybe have a 10% interest rate for a 100k home and borrow 50k from the investor. Make interest payments and some principle for a few years then a lump sum fee at the end for a significant amount of the principle. With those terms, why not just buy cash out front?

I see the benefits and how private money is used for financing flips, but I do not understand how I can utilize such methods for a rental. Any insight/ articles would be much appreciated. Carson

Thank you, @Aaron Yates

@Aaron Yates

@Aaron Yates