All Forum Posts by: Chuck Williams

You can also check out Prestige Property Management. Tell them Chuck sent you. 

Agreed. There are some great deals to be found in Detroit.....as long as you know where to look. It's best to go boots on ground or have someone look around for you to evaluate neighborhoods and surrounding areas. Done right, Detroit can be a great investment opportunity.

Thanks for the info @Ayodeji Kuponiyi

@Nancy Curran its not exactly that the area is bad. The location is close to other businesses and some better kept apartment buildings. The surrounding area has seen the construction of high value properties and is generally well kept. However, the actual street that the building is on, while being not to shabby, has seen better days. There is a vacant lot next to it that I was thinking of turning into a parking lot.

I can understand the management intensive portion. I plan on using a management company. 

@Steve Lyman thanks for the reply. I'm from Detroit but I don't currently live there. I do plan to make a trip sometime at the end of the month however. I'm not sure if the seller is working with a broker but I would imagine so. I appreciate the information about the pro forma. I'll contact the seller to see if they have one available. My plan is to have my rep go in with my contacts for a walk through. If I get the thumbs up, I'll request a second walk through and go see it in person. Thanks for the LC info also. I'll use it as a starting point. 

Hello. I am a somewhat experienced investor who owns a few rental properties in different cities. I have been primarily focusing on single family homes in the 3/2 1400-1800sqft category. I've been interested in getting into multi-family investing and recently found a 25 unit building at a very reasonable price. The cap rate is about 12 percent. The property is in need of upgrades inside and out (Though I haven't done a thorough inspection) and isn't in the greatest location. It's at about 90 percent occupancy.

I feel that the area is an up and coming location and that the landlord is probably not charging enough for rent (I'm sure I could charge more, with some upgrades). On the outside, it sound like a good deal but the price seems too good to be true. The owner is even up for seller financing. My problem is, I don't know the first thing about valuing this property. I want to talk to the seller and do a walk through but what questions do I ask? What am I looking for? The building is listed for 500k. I planned on doing commercial financing with 25% down, but what would a decently structured LC look like?

Hello. I am a somewhat experience investor who owns a few rental properties. I have been primarily focusing on single family homes in the 3/2 1400-1800sqft category. I've been interested in getting into multi-family investing and recently found a 25 unit building at a very reasonable price. The cap rate is 12.5 percent. The property is in need of upgrades inside and out (I haven't done a through inspection) and isn't in the greatest location. It's at about 90 percent occupancy. 

I feel that the area is an up and coming location and that the landlord is probably not charging enough for rent (I'm sure I could charge more, with some upgrades). On the outside, it sound like a good deal but the price seems too good to be true. The owner is even up for seller financing. My problem is, I don't know the first thing about valuing this property. I want to talk to the seller and do a walk through but what questions do I ask? What am I looking for? The building is listed for 500k. I planned on doing commercial financing with 25% down, but what would a decently structured LC look like?

I saw this. My initial thought is that inventory would start drying up, as more people would have access to the funds to purchase homes. I like the idea for Detroit overall, as it would entice people to stay if they have a foundation to build on. However, I don't like the idea for carrying a second mortgage for someone who isn't savvy enough to refi after a while. The initiative stipulates "the people who have the income to afford it", but it's too reminiscent of pre-2008 to me, for the fragile Detroit housing environment. I think it could definitely drive up home prices though....as demand grows.

Thanks for the replies. I'm think I will follow Stone's advice and submit a lowball offer. If they don't like it, at least I can say that I tried.