All Forum Posts by: Albert Chun

@Albert Chun Columbus, Ohio is a great market. We are appreciating so it is tough to find cheap properties.

I recommend that all of my out-of-state clients start out with a property that requires little or no work. This allows them to get their feet wet. They then can take on more challenging properties from there.

If you find a nice 2-4 unit it is easy to raise rents and refinance the property. You can even sell it and 1031 exchange into something bigger (disclaimer: I am not a CPA and recommend you reach out to one for more information on this)

I have not purchased anything from the marketplace.

@Albert Chun

Hey Albert, the BiggerPockets podcast is fantastic for anything RE investing related, but I also like to tune in to Keeping it real by DJ Paris podcast. They are based in Chicago and talk to a lots of Chicago brokers on their show. Very interesting and might be helpful to you.

Hi @Albert Chun - First, you should realize that unless you have a buyer's agent, that you are paying a commission on the sale, any agents involved in the sale are working for the seller.  Granted, professional ethics should not allow them to actively deceive you but be prepared to verify any information you are given, either by your own research or by a financially disinterested third party.

That said, you should ask about any known physical problems : aging roof, damp basement, due-for-replacement HVAC system.  I believe that most states have a disclosure form that an agent is supposed to fill out with the owner.  Obviously, the value of this disclosure is in direct ratio to the honesty of the owner.  But it is a start.

Next you should move on to the financial aspects of the transaction. You should ask about the amounts of the previous years property taxes and average utility bills. Verify that there are no special assessments known to the seller. Ask about any HOA involvement, and if so request a copy of the bylaws and a full schedule of fees.

If the answers to those questions are satisfactory and your own interest in the property has survived a visual inspection, spend a little time checking out the neighborhood.  You can fix a lot of things, but you cannot fix a lousy neighbor.

If the house is still a candidate make an offer with sufficient earnest money to have it taken seriously.  Use inspection contingencies to make sure that the seller and agents have been reasonably forthcoming as to the condition of the property.

@Jason Carter 

Thanks man! I appreciate you trying to help me out back in January. I guess B-ham wasn’t meant to be. I think it worked out for the better. 
 

Hello Albert, there are many factors to take into consideration with many new developments and redevelopment of the city being at the top. Construction everywhere you go. All blight on its way to demolition. 

Same people That wouldn’t touch Detroit with a 10 foot  are starting to move back to certain areas. 

The crowds have changed and it’s not like what it once was. 

Many big corporations coming to Detroit and setting up shop including tech industry. 

Detroit was once one of the biggest and most thriving cities in America and it did hit rock bottom after the crash and bankruptcy. The only way to go is up once you hit rock bottom. 

There is 10 new developments all throughout the city taking place on top of the new Chrysler plant. 

It is the Motor City after all  and now with the autonomous vehicles coming into play with major corporations working on this in Detroit I see more appreciation on its way. 

The comeback it has made so far is extraordinary and it’s not halfway there.  

I can only share my experience which has been phenomenal. I am also local to Detroit (30 min commute) which allows me and anyone else local to Detroit to see what’s happening instead of reading about it in an article. 

The other things to consider are abundance of fresh water, Access and ports to international waters. 

I mean where else can you buy a house for 10k that needs full rehab board it up wait until the next season and sell for double if not more. 

The cost of new construction not everyone can afford including some bigger corporations. Why not revitalize a solid structure for $40.00-$50.00 a sq. Ft as opposed to building ground up which will run $100-$150 sq. Ft. 

Of course there are pockets and areas which are more desirable than others and you have to know the market and invest wisely. 

As far as cash flow goes you can’t get any better for example : I have a rental in Dearborn ( a Detroit suburb) which I paid 80k for 2 years ago that’s renting at 1000 a month. Of course I had to finance this property and am only cash flowing around 300 per month. 

On the other hand I have a place in Southwest Detroit Near Mexicantown that costed me around $28,000 all in including repairs etc.(2018) and I'm collecting $900 a month from This SFH. Tenants never missed a payment or have been late and I don't see them going anywhere for a while and if they do it will be filled back up in no time. If I were to sell right now I would get atleast $60-70,000 for it or I have the option to pull out 80% of the 60k to be conservative that's still $48,000.

I prefer to just let it ride until I have 15-20 of these Detroit properties cashflowing that will all appraise between 50k-100k. That’s when I’ll do a blanket loan on all of them and buy a nice apartment complex or something similar. 

Where else in the nation can you do this right now other than Detroit? 

 Detroit and surrounding suburbs! 

Have many partners and investors from Southern California you can connect with local to you that will share their experiences and our processes. 
@Isaura Orellana

Multifamily would be the way to go. If you’re looking for appreciation, Cashflow and a great Return Detroit would be the way to go.