All Forum Posts by: Bala A.

I work with these two:

Metro Detroit Property Management - Mark Hutter

NHL Property management - Howard Genser

There are a tonne of companies and each one has had good and bad experiences, so no one in particular stands out.

One part of the equation is that the Detroit market itself is a tough place and is not for the novice investors.

Only seasoned and large volume Investors make it successful in Detroit.

To any investor looking to invest in Detroit - Location is everything in Detroit. 

Detroit is rebounding and everyone knows about it's current rise from Bankruptcy.

Detroit has made it's way to the Top 10 in the scientific pool of talent in the US Nation. 

Due to Automotive, Engineering, Bio Medical and Machine learning technologies - AI, Robotics, Fuel Cell, Driverless etc etc. 

Courtsey - 

https://www.cio.com/article/3219718/the-13-best-value-cities-for-hiring-tech-talent.html
https://www.cnbc.com/2019/05/07/this-is-the-top-city-for-small-business-in-the-us-study.html
https://www.crainsdetroit.com/other-voices/attracting-tech-companies-would-help-diversify-economy
https://www.innovationleader.com/top-10-us-cities-for-corporate-innovation/top-10-cities-for-corporate-innovation/1055.article

So the Population trend is reversing as multiracial millennials are moving into the core areas, partly due to affordability and also due to employment opportunities, and the next consensus in 2020 should give us a good indication of this. 

(Btw when the 2010 census were conducted we were still using Blackberry.) Let's see in 2020.

As in every Historical Industrial City as the masses of the population grew, Gentrification "away" to the suburbs happened.

And the trend had begun in 2012 and is ongoing with the next 5-10 years re-Gentrification pacing to the Inner core (we know the situation in CBD already) and spreading to the suburbs. Hopefully, this trend continues with the Investments flowing in. But it does not happen in 2-3 years if one was expecting.

There is every class within Detroit city Limits - A, B, C and D, E and F.

A - Sherwood Forest (where the current Mayor resides), Palmer Woods, University District, East English Village, North Grandmont Rosedale etc

B & C - Sorry, playing it close to the chest, so won't give it away so easily. But general guidelines are Grandmont Rosedale, Aviation Sub etc

D-E-F - Littlefield Community, Happy Homes, North Campau, Wildermere Community, Forest park, and even Fitzgerald belts etc.

Where one can buy a home in the D-E-F suburbs property for 5-10K.

Only on a Quit Claim Deed (not on a Warranty Deed though).

Expect to pay 10-12K in back taxes and another 15-20K in rehab (perhaps have to deal with 1-2 feet of water in the basement and a 3-5K owing in Water to DWSD, or a caved-in roof to site a few defects to deal with) 

After the rehab the investor, won't or can't, find a legitimate tenant (with a Credit score of 620+) after the property is fixed for 775-800 per month for a 3 bed/1 bath (which is the ave in Detroit rentals)

And this is where the horror stories of Investor "Greed" come from and disrepute to a City/Community.

And the media laps it up. 

Good news does not always sell papers.

Why build a new dwelling (at say 100K) when you can buy nice Brick existing dwellings in good areas for half the price.

Under 50K as the rents will be the same.

3 bed 1 bath = 750 pm (+/- 5%)

3 bed 2 baths = 800 pm (+/- 5%)

4 bed 2 baths = 900 pm (+/- 5%)

Higher the LTV the Higher the Interest rates, at 90% LTV the rates would be sky-high.

Just keep us posted on how your search goes Kevin Miller. 

Sure @Cynthia Miller

Technically the tenants can file a Criminal complaint for being 'locked out of "their" own house' 

Even if you are the LL, you will be a trespasser as they hold a signed Lease in place. 

They can involve the Police, and have the right to defend their property.

I know what you must be thinking - It is MY home. But technically since there is a Lease, they're entitled by law.

Also the tenants can file for damages as their children fell sick in the cold weather etc, as they could not access the property, etc etc. You know the list of dramas...as this list can go on. 

One said their Puppy died in the basement 

(and if I remember right had a claim for 15,000 on one Landlord)

You can not just "lock" your tenants out. 

I am a LL with a large portfolio of Detroit SFR rentals.

It is not a Civil issue anymore it becomes Criminal intent on your part.

I can go in-depth on the various scenarios (with experiences picked up over the last 7 years investing on Detroit) but would not wish to as it is a different topic on it's own right.

Hence, Sorry but just take this experience on the chin and go through this eviction like a Landlord would do.

For the next tenant, follow a regimented Screening process: 

1) Check the 36th District court for past evictions & money jugements (LT issue and GC issues), if it is under 3 years avoid the drama and move to the next applicant.

2) Previous Landlord verification - call and speak to them (run the Landlords name if you have MLS access against the ownership records)

3) Employment History and Stability - 3 times rental income atleast. 4 times if it is under household share.

4) Credit Score - a Good indicator but take it subjectively as a Low Credit score is not an automatic refusal. There can be specific cases.

5) And a couple more Detroit specific "Smart LL" process points...

There are many companies to work with. The good ones have stayed in business the longest in my opinion. 

And please do not go by Star reviews on Google. 

As a Good Property management to a Landlord, who enforces on-time payments from tenants, will get a Bad review from a Tenant. And vice versa.

Check out Huntington Bank, they lend if the appraised value is 40K per property.

I do know Huntington Bank and Chemical Bank do lend under 70K.

For most cases, the minimum Property appraised value should be 40K and above.

Hi Constance,

Desirability, Price to Growth gap, Affordability, School, Aspirational suburb etc