A lot of people that are buying Michigan Foreclosures and are using creative strategies to work around the 4-property and high-down payment obstacles. Here’s one that works well.

Use commercial funding to refinance your investment properties. If the properties were bought right with significant positive cashflow, then it shouldn’t be too difficult to package three rented homes together into one commercial loan. This frees up the funds that were used to acquire the property (either from a line of credit, straight cash, or other sources) so they can be re-invested in purchasing an additional three properties.

Commercial loans are different from standard mortgages. They often come with 10 year amortizations and have to be refinanced every five years and because of that it’s usually best to select the right type of investment homes that have such a high cashflow rate that they can account for it.

This translates into buying very inexpensive properties. Houses that can be bought and fixed up for $30,000 or less and will rent for $750-$950 per month match up well to being rolled into commercial loans.

This is why smart real estate investors from across the nation are turning to Michigan foreclosures and properties in other areas that can be had for a bargain price. The financing is still there to keep buying more properties while prices are at record lows. Even after the published declines brought on by the credit crunch and mortgage meltdown, other markets on either coast as well as Florida have values averaging well over $150,000 which don’t mesh well with commercial financing.

So if you want to buy a lot of properties at great prices that cashflow well in a short amount of time, then real estate investing in Michigan foreclosures is the way to go.

Michigan foreclosures bring a unique benefit not found in other real estate markets…namely that homes can be bought at such low prices, but they still command high rents.

Further more, with new methods to collect rent automatically each month and great property managements companies to take care of the occasional leaky faucet; it’s easier than ever to invest from afar.