All Forum Posts by: Brian Ploszay

Market corrections are hard to predict.  Sometimes there are slowdowns, rather than market crashes.  

My opinion - loan defaults are quite low now.  So a severe real estate crash is not likely.

There are definitely meet up groups in Chicago that are full of wholesalers.   You probably can find at least one per week.  Maybe more.

Gerald Berlin might be a good recommendation for this.

I am in the Chicago area.  Be happy to talk to you anytime.

Detroit may be the opposite in real estate experience from where you live - San Francisco.  It is a city that has declined, like no other major city in America.  

That being said, there is a small portion that is making a roaring comeback.  Basically near downtown.   Try Corktown, Cass Corridor areas.   If you go outside those areas, it will be a different experience.  You can buy properties very cheap, but you have to have deep experience in these rental markets, where some of the population is at the poverty level.

During the last 30 years of Detroit's decline, the wealth of the region shifted to the suburbs.  Particularly Oakland County.  That's a different animal.   

I find Detroit fascinating and I am hopeful that the city will find more stability in the coming years.

You are renting a house, not an apartment.  So there is lots to know.

1.  Try to find a tenant who will stay there several years.  Don't rent to someone who has a short term rental history.

2.   Renting a house will require maintenance of the house.  This tenant should be prepared to do it.

3.   You may want to insist on doing a house visit, checking out how they live.

4.   Of course check credit, job verification.  But also eviction history and sex registry list.   Renting to someone who stayed in their last place a long time and has had their job a long time, shows stability.  And if they are somewhat clean, then take them.

5.  Unlike an apartment building, you have a water and possibly trash bill.  You may want to have the tenant pay this, or realize that this is an additional expense for yourself.

Once a house goes rental, the physical condition usually depreciates faster than an owner occupant.  So realize you may be going down that path.  If you are not committed to real estate investing, I would just sell the house and become a renter.  Nothing wrong with that.  

Also, you are from Carmel.   Some of these upstate NY towns have low appreciation over time.  Not sure about your area, as it is a bit closer to NYC.

Hiring a property manager is the best way, but property managers often do not perform.   Start interviewing property managers.   A better way is to talk to some other landlords and get referrals.  

I believe that in-house property management has lots of advantages.  But it would take away from your insurance income.

If you do hire a property manage, you still want to manage as a supervisor.   Routinely go to the property to check it out.

If they are below market, you can raise their rent and see if they will pay.   If you are doing renovations that require their removal - such as extensive plumbing and electrical upgrades, better to get rid of them.   I believe that a 30 day notice is required to get rid of a tenant.  Keep in mind, that is not enough time for a tenant to secure and get the keys to a new place.  Plan on 60+ days.  If they don't leave, you will have to prod them.

I am from Chicago.  Can you describe the issue?

It is probably legal for a sex offender to visit, but their housing options are highly regulated.   Most sex offenders are not child molesters by the way.  

I tend to be okay with tenants that are less than clean as long as they keep their mess regulated to inside the apartment.   On the other hand, I have had tenants that are "rough" on the place.  That can add up.