All Forum Posts by: Heather W.

I felt like @Joshua Dorkin is kind of hard on Detroit on the podcasts, but these pictures are fascinating.

Full Album of pictures- http://m.imgur.com/a/JO6hn

Original source- Includes interesting stories about some of the areas.

Hi Chudi -

I've been looking closely at this area for another rental. I agree with Rick that the area varies by street and also it depends on your purpose. I would say "no" to anything by Elizabeth Street and south of Avon. Perkerson Park has families around it, but at night there is a lot of gang activity. The west finger north of the cemetery is bad, but east of the cemetery down to Beecher is ok. West End is good. Anything close to Donnelly Ave is ok but the further south you go away from Donnelly and closer to Avon the worse it gets. There are some good pockets around Ft. McPherson as well.

You really just have to drive it at day and at night.

Heather

You're doing better than me. I have a 1900 sq ft house getting insulation next week for $1500 including venting two bathroom fans outside. He is going to fill out the forms for GA Power for me for a $300 rebate.

I think that is a great price for painting, especially if you think he does great work.

@David T.

David,

The insurance is quote is for $534/yr through American Modern but is only for $60K replacement value right now. When I get the inspection I'll try to convince them to increase coverage or decrease premium based on how much updating has been done. They limit replacement value to 20% of purchase price on older homes, short sales, etc.

I have another policy with them on a house I bought for $40K. It has $60K replacement, $300K liability, 3 months of replacement rent and some vandalism coverage for $519/yr ($1000 deductible).

@Rachel Leonard

I've seen the house myself, but the inspection isn't until Friday. So it may turn out not be such a deal after all.

@David T.

David,

I'm not coy, but I do preface this comment with the fact that I'm a new buy-and-hold investor and not a flipper. I'm under contract for $45K on a 5/3 house. I only have $5K budgeted for improvements because it seems to be in pretty good shape, but my inspection isn't until Friday. Rentometer says average rent is $1102 for a 5 bedroom and the median is $1048. In fact, I'd be curious to know what you and @Rick Baggenstoss think. Attached are my starting numbers.

Thoughts?

@David T.

I'm under contract on a house that sounds close to yours in location. I think the area has potential in a few years, but the flips seem to be moving very slowly. Personally, I wouldn't buy it unless the rents were better. On the other hand, maybe you've found a good little pocket. It is hard to say without knowing the exact address since the area is starting to transition.

Welcome!

Do you know what kind of investor you want to be yet?

@Douglas B.

In addition to the math looking good, I shop for less expensive houses because I'm new and don't have a lot of capital.

I'm too new to have dealt with an eviction yet or to have been burned by bad tenants, but as @Serge S. suggests I'm going to watch my spreadsheets closely to make sure my long term profits match my projections.

In the end, I think the same way I will transition my traditional retirement vehicle from higher risk stocks to lower risk bonds as we near retirement age, I imagine I'll trade up to lower cash flowing B and A class properties the older we get.