Detroit investor - CofC

[Linh Nguyen]

Seeking opinions from investors in the city of Detroit.  I own 4 properties that were sold without CofC and have heard mixed opinions about going through the actual process, anywhere from the unnecessary items to the difficulty working with inspectors.  Has anyone here who have gone through the actual process can give me some insights of what to expect as far as timing and costs.  I am an out of state investor so any other inputs would be much appreciated!

[Scott M.]

All depends on your definition of necessary. If following the rules and local laws is important to you then getting the COC is necessary as it is local law. You get the added benefit of avoiding expensive tickets and being able to evict. 36th district court said in August they would not hear eviction cases for those who do not have the coc. Although the reality of that is somewhat fluid at this time.

Four steps and two are just paperwork.  

1. Register as rental.  Free for you to do and just fill out a form.

2. Building inspection.  Costs ~165 for initial and 1 reinspection.  Does not include items needed to be repaired.

3. Lead clearance. Costs ~400-700 for most SFH cost depends on size. Includes initial Inspiron and sending samples to a lab for testing. Does not include lead paint found or the fixing of it. You chose to do it cheaply by say painting over a door jamb that tested positive or you can replace it all together following lead safe practices. Clearly more expensive but pros do exist for going this route.

4.  Blight clearance.  Same as rental reg free for you to do.

If you have a home that is in good condition passing is not anymore complicated (expensive) then any other city locally.  If your home is on disrepair then it can be costly.

Cists beyond the inspection costs are impossible to estimate for you or give an average because it all depends on the condition of the property.

We have successfully gotten the coc on hundreds of homes, including passing two lead and two building inspections just last week.

Like anything your first time through can be intimidating but all on all just like any other city process and just as fun :-)

Personally we recommend all of our clients get the coc and educate them on the process.  Most get it but some don't.

one thing for sure is the city and courts are going to continue to make it more painful if you don't get it.

Also tenants can pay rent into an escrow with the city vs pay you to put pressure on.  The time of not doing this in Detroit is for the most part the past.