All Forum Posts by: Pete T.

Hey Larry, I am not sure there is a quick fix for this- but 1 piece of advice would be to concentrate on the HELOC first. The rate is higher, its not fixed and they are both attached to the house. Also, it is smaller so you can get rid of a payment faster which will help you to qualify for something sooner, possibly rent if you have to, and gives more options (smaller monthly committment). Once the HELOC is payed off, then you could consider selling or renting and buying something else, but that will also require having some amount of cash available. You might want to start w/ a duplex as larger MF will require more reserves and you could have some expensive surprises starting off.

Lender: Oh yes, we can do that no problem. All you need is "x" Really, we always close in "x"

Later: Well thing changed, we still need x, y, and z- plus several new things and a few you have given me multiple times. I know you thought we would x+15 days to be safe, but we really needed +30 because we arent even as good as the competitor we pretended to be so much better than.

I think most of the confusion is about Detroit is like anywhere else, knowing your area. @Annette Hibbler I think including Ann Arbor and "nearby" Lansing is not really describing the Detroit area accurately (if I understood you correctly) as neither are close (in a metro area sense) and that metro area is already quite larger. Many of those free places in Detroit probably arent worth picking up, but in addition to all of the northern places people mentioned, there plenty of relatively cheap places to the south (most of the downriver area) that I would think would be ideal rentals (cost vs rent).

those numbers can definately work. you have to make the decision of what the extra cash flow is worth. An area that doesnt have the same "numbers" in a professional area may cause less headaches and might be more profitable in the long run (turnover, damage, etc.) Just a thought to keep in mind.

I think direct deposit is best if you can do it. We do a separate account for each renter that they put the money in whether it is via DD or not. It is a pain having several accounts, but it actually make it easier to see how each unit/place is performing.

without debt and experience, one route could be a duplex since you need a place to live anyway. This could help you in a number of ways including all of the programs and assistance to first time buyer, being an owner occupant, and living on site w/ a tenant will be helpful as well. This way you have a chance to learn and see if you want to be a landlord at a minimal expense as well as learn lesson at a much cheaper cost, and you will may more exit strategies than you would if you do a larger MF first. Of course everything depends on the cash you have, the income you make, your credit and connection, and most importantly- your long term goals.

@Brian H- I am not sure what you ultimately did w/ this property, but I think the question you asked and your goal are 2 different things. A lot of replies mentioned it might not be the best or razor thin, but your statement of living in one unit changes everything.

From the conversation, I gather you want to use financing that minimizes your cash out of pocket, while buying a place for you to live, and maximize it as an investment at the same time. While most of the things posted above are true, for your situation, this may be the best option, especially if it is favorable to everything else you have seen and you have to live somewhere in that area anyhow. Now, as far as other investments, you will have to decide if it makes more sense to go out of area or not- but I think getting a quad and living in one unit to get all of the advantages of owner occupant is a great move! What did you do?

Venting for the most part. Contacted the insurance company and providing them everything they asked for. Worst thing they can do is nothing, either way I will do my best to recoup the costs out of my pocket from the tenant.

Out of area and wife has to deal w/ a tenant that brought in an unauthorized washing machine (that we later found leaked out the back) and ran it causing water damage. Was given notice to discontinue use- Used again causing water to seep downstairs and collapse ceiling and floor damage below!

You could also have them do a money order/cashier check to you and text you a pic of it before they send it.