All Forum Posts by: Mike Wallace

Westland seems like a decent working class area to me? I am interested in that podcast, where can I find it?

After closing costs the final purchase price came to $15,200. I had to put in $5500 to get it rent ready.

The association fee is $30 per month (why i love this complex so far)

I advertised the unit and my phone rang all day and night. Found a good applicant with a 750 credit score and moved him in at $650 per month. Took me 19 days from closing to tenant move in.

My other expenses are $440 per year for insurance, and $750 per year for taxes. Tenant pays water, lawn/snow etc.

UPDATE:

put the for rent sign on the front lawn and got a ton of calls. Screened a number of people, found a guy with a 750 credit score, moved him in over the weekend. Receiving $650 per month.

Another unit came up for sale in the complex as a short sale, I may jump on it.

yes south westland

im in the metro detroit area.

got a quick update for you guys.

Had to put in a new furnace, central AC, and hot water heater. Got it all done for $3700 out the door.

Ripped up all the carpet and the pad was still good, getting new carpet installed this weekend for around $650-700. Had to replace a few things like light bulbs, some trim around the basement door. there is a finished room in the basement, I am doing some painting in there and it should be ready to hit the rental market.

There is a pretty nasty area that is a few blocks over from a condo complex I just bought a condo in. The condo complex and no vacancies, is kept up decent and does not seem to have many problems.

What worries me is the nasty area that is a few blocks away. Which consists of some burned out houses, people wandering around aimisly at all hours of the day/night. Surprisingly the crime in this area was much lower then expected when i looked up the stats.

I have no experience in shacktown. On paper shacktown looks like it cash flows great, but if you have ever driven around that area you will realize that the tenants will be difficult to deal with. What turned me off about shacktown was the actual duplexes are junk, poorly built. But I would love to hear someone chime in that has experience with shacktown.

Redford west of telegraph is good.

Rentals are all about buying right, as in buying for a good price. If you buy something for a good price you can make almost anything work.

Yeah Nick it is harder and harder to find deals out there.

This condo will be my first single family home, of sorts. My other properties are all small multi's, 5 units and under. If you want my advice I would stay away from trying to rent single family homes, one bad tenant can put you in the red for the entire year. If you own lets say a 4plex, one bad tenant will cost you some money but you still have 3 other ones carrying you along and paying your bills.

Single family homes are putting all your eggs in one basket. If I was you I would try and find a duplex or 4plex.

Yes the MLS is your best bet. I have sent out letters to owners before by researching the tax records, got some responses, but everyone wanted way too much.

I own real estate in both Wayne and Westland. I like the areas, they cash flow great with not too many problems. Sure buying rentals in higher end areas are easy to run, no crime, great long term professional tenants, even a chance at some appreciation on your property. But they do not cash flow much, so I am not interested.

I am in my 20s and in this game for the long haul. Areas like Wayne and Westland have their share of problems, cars get broken into once in a while, maybe a few drifters roaming around once in a while, but nothing crazy. No gun shots/drug deals on the corner etc. The Airport and Ford Factory are close and most of my tenants work there. They all earn around 15-20 an hour so they can not afford to buy a house but want to rent.

Nancy you bring up a great point with people from Detroit moving into these areas slowly but surely. Yes a lot of neighborhoods that are close to Detroit have become "blacker". In my experience the people from Detroit that are moving into the suburbs are the good people that want out of Detroit, they have jobs, decent credit etc. The only reason they stayed in Detroit so long is because of family ties.

There is INSANE cash flow to be made in Detroit right now. Looked at a 72 unit the other day that is at 60% occupancy. the owner would take $400k, just run the numbers on that, you could make big bucks. But it is in a ROUGH area. You would be babysitting full time and would run into very bad issues, shootings, drugs, wild stuff. Not for me.

I will not invest in Detroit for those reasons. But those that do with these low prices are doing very well for themselves.

Bill, the Condo is 10 miles outside of Detroit.

median annual income is 40k, the median home/condo value is 80k. Far from Detroit.