Newbie from Southfield, Michigan

[Shaun Drone]

My name is Shaun and I currently live in Southfield, MI. I'm a transplant from Ohio and have been in the metro Detroit area since 2008. My wife and I currently own a condo and out looking to capitalize on the available properties in the Detroit area. We are looking to expand our knowledge of repairing homes ourselves and discovering diamonds in the rough.

[Christian Hutchinson]

Originally posted by @Shaun Drone:

@Lynn Lewis I have made 2 connections with individuals who have a total of 7 homes between them in the area. One gentleman owns two with his wife and combined with outside investors to buy two more. The second gent owns one and bought another he is renting to his cousin. 

I have learned about time to profit, researching rental prices, and the value of seeing a property first hand. This last detail is key in his area as often homes look good in pictures, but are in the block with 6 abandoned homes. I'm not looking for that type of investment. 

 HI Shaun,

Welcome to the The Game.

You are looking for your first property? I don't know what type of cash and credit you have.  But I'm three years deep in this.  So I'm just past training wheels.

I highly suggest anyone doing this the first time if you are not flush with cash.  Go Duplex in a working class/middle class city.  So your side of town, Westland, Garden City would be solid. If you have some extra cash and can stand higher monthly expenses Ferndale is good too, if you are coming back east.

Or you could go Middle Class/Upper Middle Class Area, condo with low fees. Canton, North Farmington, Commerce, even Novi might have a deal you can score.

Try to avoid anything requiring a lot of work on your first time around.  Paint, carpet, etc is cheap, and labor is easy to come by.  But electrical, plumbing, and other "guts" related stuff on your first go around I would shy away from. You want to close the property and have a paying tenant in less than 30 days.  You have 60 days until the first mortgage payment so, those first two months rent help you with cash reserves, and offsetting renovation cost.

After you do one or two properties, then try stuff more risky.  The amount you learn on your first 1-3 rentals is insane.

Good Luck!