All Forum Posts by: Darvin Johnson

@Ryan Anderson I've actually looked at TC on and off for the past few years and actually missed out on a deal a few years ago. I'd be interested more in long term than short term due to the consistency. I'm not very familiar with the surrounding areas aside from considering purchasing some land in Mesick. Any particular areas that may cash flow a little better with a little less competition than TC?

@Sean Sloop I've been interested in Grand Rapids for a while now but like you said it's VERY competitive.

I'm a UofM student and ran so Lansing would've been a tough sale to me a few years ago but I'm definitely open to it. State capital + major university are huge pluses. Any recommendations on areas to avoid or target?

@Arsen Atanasovski I actually have a cousin who has been investing in Taylor that mentioned Inkster to me. I'm a buy and hold kind of guy so I'd end up doing a bit more than just lipstick so I can lessen the likely hood of having to do much later but I will definitely look into the area. Thank you. 

Does anyone have any suggestions for areas in Michigan that would make for a good investment? I'm looking in Detroit now and the metro Detroit area has gotten pretty hot lately making it tough to make a profit. I've considered Grand Rapids but was wondering if any of my fellow locals had any suggestions or tips for areas they're invested in or looking at currently. 

Thanks all, looking forward to hearing from you. 

@Dave Foster thank you for your response that was a big help.  

I currently have a home that I am selling under land contract which has about a year and a half left on the contract. Once the home is purchased I will have about $40k profit.

I know that I could use the 1031 exchange to purchase a new property and prolong the taxes. What I was wondering is if I pulled out the equity now and used that to put towards a new property would that essentially leave me at break even after the sale and allow me an avenue to even further reduce or by pass taxes completely? 

I'm aware of the possibility that something may happen and they may not be able to purchase the home but even with the addition equity taken out the rental rate still more than makes up for the price difference. 

Thanks all, looking forward to hearing your thoughts. 

@Jacob Stokes in my experience the only time cash isn't preferred is it's a low ball offer or there's significant sentimental attachment involved.

In the end the agent is working for you on your behalf (unless it's the sellers agent as well. ) Have the agent explain WHY it doesn't matter, they'll should be able to provide a why if they know and find out why if they don't. Otherwise they should present the offer and tell you the sellers response or you should get a new agent.

@Jonathan Giglio For me my worst real estate investments where the ones I missed because I waited. I used to live in Dover and honestly I got that same energy about almost every thing I considered doing while I lived there.

There's always going to be hot markets and things will always be moving quickly in some areas. My suggestion and current strategy is be willing to invest in any market that you can comfortably drive to and back to handle something in the same day. I'll even go further if I've lived there before and have connections in the area.

Good Luck

@Korey Barberio I'll have my realtor send me the comps and I can DM you think link if you'd like. If what you're realtor brought up was close to 70k they might have cast a VERY wide net. A lot of neighborhoods are up and coming but without boots on the ground knowledge it can be tricky to navigate.

I think you're options would be sell as is and try to break even or finish, get a tenant and use BRRR to move into another property while collecting a little rent. You could definitely hire a property manager to handle everything and even have them market it to an investor as turn key but knowing that area you'd still probably end up breaking even.

What did you use for market research? Have your realtor pull the comps. I'm a little familiar with the area and what you've been offered about in line with the neighborhood. For your listing price someone would expect something that they would be able to move right into. 

I think you could finish it and rent out both units for at least $600.

Best of luck, 

Darvin