Alright! Long awaited update. I promised on the 5th, I'd let you know how the portfolio stabilization is going. If you haven't caught up, here's the tl;dr - I acquired a bunch of properties last year with a turn key company called Own It Detroit. We got solid properties, but questionable rehabs and really crappy tenant placement. After a year of not seeing any cash flow and rent excuses, I terminated them and wanted to shed light on the experience.

I interviewed some property management companies in the new year, and like you would expect, most are just basic intro conversations, etc. I spoke directly with Drew Sygit - the founder of LogicalPM and we spent a good portion of 60-90 minutes chatting about the current portfolio, the issues I've faced, and how his company plans to solve it.

We agreed on a section 8 tenant stabilization plan, and after their first full month of taking over, here's how we're doing:

Total Properties: 11

Total Rent To Collect: $10,240

Historically, under Own It Detroit (Mutual Property Management) -- monthly totals of rent collected on the first and before the 5th was typically $1200

LogicPM has inherited tenants who for the past 6-8 months were told as long as payments come in before the end of the month, partial payments included, you're okay. They created a safe space for my tenants to screw me lol

On the 5th of last month, we sent out seven 7 Day Notices. For the first time, our tenants learned that I'm not a charity. We went from a historic less than 50% collection month over month, to our highest collection of 80% in a given month.

Today is March 6th and we collected 32% of the rent - A major increase. Today, without asking, LogicalPM has auto sent 7 day notices to tenants. We have an eviction court date scheduled for one, and hopefully more will follow.

I can't fault LogicalPM on not being able to collect 100% of the rent by the 5th. They didn't place the tenants. But they are doing a good job at enforcing collections and trying to improve it. What LogicalPm has been excellent on is their communication. I receive almost daily communication on the status of my portfolio, units, etc. They're in the process right now of doing video inspections for me on the homes, and they have been quick to inform me on any issues, etc.

Right now, I'm annoyed with market tenants in detroit. I've come to find out that Own It Detroit (Mutual Property Management) put people with below 600 credit scores in their clients homes. Quite annoying lol

The plan moving forward is Section 8. Section 8 is guaranteed income on the first, allowing me to scale my business. Right now, I'm sitting on refinance offers to cash out $600k+ and I'm hesitent to do so because the rent collection just isn't stable.

In the meantime, I'm enjoying the appreciation. I have a property we picked up for $65k all in, and It's currently under contract for $90k. I'll use that to re deploy into another rehab project down the line.

Here's what's Impressive:

Own It Detroit had one of my properties listed for rent for 90 days. Couldn't get a tenant. This is also the property that took 4 months to rehab because I think they forgot about it...

Magically, LogicalPM took this property over, went inside, cleaned it up, took new photos, and had this Rented within a WEEK! (To someone with 740 credit score!) and priced $200 HIGHER!

Extremely impressed and willing to give this market tenant a shot while I section 8 the rest of the portfolio.

That wraps up my update. This will be my last post using Own It Detroits name. I did this to shed light on my investor experience and to help steer other out of state investors into making better decisions. I received many DM's about how my post have SAVED them from working with Own It Detroit and it feels good.

My advice - Avoid Own It Detroit. But if you're wanting to rehab a cheap property, Do 1 deal with Own It Detroit.. If it doesn't cash flow positively within 3 months, avoid them and find someone else. I dove head first into them and now I'm fixing my entire portfolio.

I'm experimenting with a few other groups in Detroit right now for both turnkey buying move-in ready units, rehabbing, and tenant occupied. I'll provide updates on that experience after some data has come through.

Send me dm's if you have questions about getting started in Detroit. Happy to answer any questions you might have. Also welcome to comment below and I'll respond with full transparency :)