All Forum Posts by: Elizabeth Bassett

We have done some lucrative house flips in Negaunee and Ishpeming. Never done Marquette as the entry price point is too high. I'm sure you could make money there too if you could get a great deal! Negaunee has been the best area for us. You can get some cheap houses in Ishpeming too, but you have to make sure you don't overdo the improvements, as the resale prices are lower there (within the City anyway...you find much higher prices in the township). Do your research and I'm sure you could make it work!

   Hi Michael!

In Sawyer we rent townhomes, but I think that the rates are similar (possibly slightly lower) than duplexes.  3 bed 1 bath townhomes (bath on 2nd floor...kindof a drawback) rent for $400 per month ($410 for end units), plus $10 per pet.  We do pay for garbage pickup (absolutely a necessity in KI Sawyer) and water (because the buildings we have are not metered separately). Tenants pay for electric and natural gas.  We also have some 3 bed 1.5 bath units that rent for $450 ($460 end units).  Same utilities included.  Our 4 bedrooms are renting for $475 (they are the same size as the 3, just divided up differently), and 5 bedrooms are $700 (twice the size of a 3 bed).  

In KI Sawyer, if the unit is unoccupied, I put a lockbox on the door, and give people the code.  If they are interested, they then fill out an app (online).  Then, once I've looked over the app and they seem qualified, I call them to meet (telling them that I need to get their paycheck stubs).  That way, I don't have to make the 40 minute drive for those who have no chance of qualifying.  If the unit is occupied, we require an application in advance before scheduling a showing (to minimize disruption to the tenant, of course ;). 

I'm definitely not an expert on the area, and I was very wary at first (our realtor warned us against the area.....as prices are so low, and tenant screening is difficult).  I can tell you though, that are KI buildings cash flow better than any other buildings we own.

Hope this helps!  

Elizabeth

Hello!

My husband and I invest in Marquette County, and I can give you some tips.  Property management is going to be your biggest problem, as there isn't a good full service company.  You might be able to get by with someone, but you'll have to keep a close eye on them.  

Marquette is expensive, and in my opinion, not worth the money.  You'll find a lot cheaper/better deals in Negaunee and Ishpeming, and we don't have any problems renting properties there.  If your feeling adventurous, you can get great deals in KI Sawyer.  There is a ton of money to be made there in rents, but don't count on any appreciation there.  Just remember that you'll need to reject about 90% of applicants, and wait patiently for a good one (they are out there!).  

Negaunee is more desirable than Ishpeming (closer to Marquette, and a perception of better schools).  Ishpeming is better than KI Sawyer (though KI Sawyer will definitely cash flow better). 

When you do find something and secure a manager, make sure that your leases don't end in the winter (if possible).  The end of November to March is pretty slow.  April, May, and June are crazy, as well as August and September.  Make sure your applicants make 3x the rent.  Anyone on the fence should put down first, last, and security deposit.  Last months rent up front isn't common in this area, but we often ask for it (for borderline or lower credit scores), and a serious applicant will provide it.  If they can't....then pass.

If you have a nice rental, it will rent quickly.  Good luck in your search!  This is a great area to invest in ....we do it full time!  

That is a difficult question. I think it depends on how secure you want to feel, and how quickly you want to grow your investing business. If you pay it off, you can always borrow against it later if needed (although that pretty much defeats the point of paying it off). If you decide to spend the money on investing, take a decent chunk of it and leave it somewhere safe. That way if you hit a dry spell, you won't be at risk of not making your mortgage payments.

Agree with Kyle Hipp. Lease is valid for approximately 12 months, ending on the last day of the month. You can have them pay the prorated amount of this month plus next months rent at move in, or if it's very early in the month, just the prorated amount.

I use Smartmove and think it works great. Keep in mind, it's really not tenant screening...just a credit and background check (as well as identity verification). You still need to check references, verify income, etc BEFORE you use Smartmove. Use it as your final step to verify credit score and background before you rent.

That being said, it's a great resource. I have found that in most cases, credit score (along with good references) is a very good indicator of a good tenant. It has saved me from some big mistakes (applicant says they have great credit, no debt...but their credit score is sub 500).

You may be able to get an affordable policy that covers those "extras" on a single family or up to 4 units. Anything over 4 units, and your policy will be pretty basic. If you only have a few rentals, you may find it worthwhile to get one that covers as much as possible (loss of rents, etc). That being said, I've been a landlord for over 10 years, and have never filed an insurance claim.

It really varies on what they will be doing. We pay some handymen $10/hour, but some things we pay people $30/hour for. Some things are $60/hour.

If a tenant calls at 3am, then it darn well better be an emergency. (No heat in the middle of winter, water pouring through the ceiling, etc). In that case, you'll need to call an plumbing/heating company that has someone on call. You should find this person and verify that the can come in the middle of the night BEFORE you ever have a problem. They will be charging you extra to come after hours or on the weekend. For me, it seems like after hour charges are double normal rates. Call a plumbing/heating company and ask.

Train your tenants to call during office hours unless it is a true emergency.

Wow! You didn't say what state you live in, but in Michigan that would be a big problem. That being said....no landlord wants to hear about mold. A lot of bad tenants use mold as an excuse to not pay rent (without there actually being mold). In your case, there is obviously mold.

Unless the problem is confined to the bathroom, then I'm not sure what would be causing a problem like this. You need to determine if it's something that you are doing that is causing this, or if it is the landlords problem. Unless its a leak in the wall or under the floor, there won't be much he can do to immediately solve the problem.

Use bleach and clean every surface in the house. Make sure that the bath fan is vented to the exterior, and if you have a bathroom window, open it every time the shower is used (and for a few hours afterward). Eliminate moisture where ever you can. You can get a dehumidifier yourself, or ask your landlord to provide one. The good ones are several hundred dollars, but can pull gallons of water out of the air every hour.

Hope you get the problem resolved!

It depends on how much you want to work! Wholesaling and flipping are work. They are another job. Multi (or single) family are a long term strategy, that when handled correctly should not take too much of your time.

If you like your current job, then buy and hold! If you are looking for a new job, then try wholesaling (or flipping).