All Forum Posts by: Christian Hutchinson

 My Property in Detroit has never had any issues, but I have a rental in Madison Heights the air conditioner was stolen.  Someone broke into my tenants garage in Roseville, my place in SH its hot water heater was damaged because someone attempted to steal and it tore up a bunch of plumbing in the utility room.

Detroit, has its issues on a grand scale but my property has no issues.  If you saw my previous posts in this thread I stated whats the formula for success in a Detroit property.  The formula is different area to area.  Fine, I understand you want to rag on Detroit.  But I have rentals in Clinton Twp, GP Farms, Detroit, Madison Heights, Roseville, Sterling Heights,  and the Detroit Rentals make the most money BY FAR, and they are the least problem in terms of tenants.  Madison Heights, schools are a just as bad as Detroit if you look at the test scores, so Madison Heights is just a working class, starter home community.  If anyone makes any money they move out. My Wife and I moved to Madison Heights in Fall 2009 from "Detroit".  We were the youngest people(25) on our whole block.  Our neighbors had a near heart attack. Fast forward 5 years later we have moved they are still there, and we own the house as a rental.

The neighborhoods you said were nice "Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights".  Are all places I would never live in at this point of my life because they are not nice areas and I would never want to raise my family there or have my kids go to school there.  But then again I've only lived in Rochester Hills(child-teenager), Lake Orion(young adult), Detroit(college), Grosse Pointe(late 20s-early 30s), and Madison Heights(mid-20).

 I have lived/owned in Rochester Hills, Roseville, Grosse Pointe Farms, Lake Orion, Sterling Heights, Detroit, Clinton Twp, and Madison Heights.  I've enjoyed my home in Detroit the most, because I actually can see the impact I am having on a whole block or neighborhood.  What we are doing matters, our neighbors are just thrilled someone has fixed a property, and because its livable, decent people want to live there. Versus buying in saying Madison Heights, your neighbors treat you as you are coming to destroy their neighborhood.

Upon moving in we noticed the key for the garage did not work.  I told him.  I will either get him a key/or change the lock.

I forgot about changing the lock, and items stolen mainly were tools.  He then changed the lock sent me a receipt for the new lock along with his rent less the amount paid($25).

He couldn't/didn't change because I said I would.  I had given him a key that was not working for the garage.

So...based on what people are saying credit rent+cash to equal about $800.  Then, have him sign an agreement that he accepts this as settlement of the matter and no future claim of damages.

I have a rental that has a detached garage.  I changed all the locks on the main home which is a duplex and provided keys to my tenants.  I failed to change the locks on the garage, and the tenant stored their stuff in the garage(which they have exclusive rights to). I also, did not provide them a key as I had planned to do.  So I AM AT FAULT.  Subsequently, items were stolen from the garage.  I requested them file a police report, and I would look into my options.  I did not find anything regarding this in landlord/tenant guide here in Michigan.  The report was filed, and received.  The perp was eventually arrested.

What would be best practice?

Discount the rent for the value

Reimburse the value in cash

Replace the stolen items

I typically when dealing with someone with a checkered payment history, but make plenty of income is I require more money down.  So larger security deposit, and I tell them I need three months prepaid.

I also use this same method for people in between jobs but have offer letters/contracts etc. But show they have income.

I am a real estate "Novice" by all definitions of the term. My wife and I's families are pooling monies to get investment properties in Metro Detroit. We have secured 2 in the City of Detroit. Both have been cash cows. I knew the area REALLY well, as in I walked home through the area from college/work everyday for 3-4 years at 12AM-4AM. I still wasn't sure.

I am NOT a Realtor. I still was on the fence about the purchase because you hear so many horror stories about what happens to properties in the city. So my formula to buy or not? I sat in my car for 8 hours and watched who was walking up and down the street. I parked at about 6PM and stayed until 2AM and watched. What sold me? I saw 7-8 people walking their dogs between 8PM-midnight, by themselves. It told me it was worth a shot. My Wife and I live in the property so that secures it. The other unit is a 4 unit Mulit-family. We have a down-on-his-luck member of our church staying in one unit he pays a couple hundred dollars, but we rent out the other 3 at market rate successfully with no issues.

Most everyone on my street has a rental or two in their home they live in, or nearby. By all reports everyone is doing well...If you are buying in Detroit its zip codes 48201, 48226, 48202, 48208(careful), 48207(careful), 48214( REALLY careful). Here is a recent graph by the the local newspaper. Basically you have a street called Woodward(main street going through Detroit divides east and west). Anything in either directions 1/2 miles east or west from the (south)Detroit River to where Highland Park(north) on Woodward is a Gold Mine. We bought a house for $130K in July 2013, we have put $30K into the home, we live in two floors, and rent out a basement unit for $1000/month and the 3rd floor unit for $1300/month. Every home on our street has "Maid's quarters, Mother-in-Law Suite, etc that is generating the homeowner some nice monthly cash. The key is to be as close to Woodward as possible. I suggest no more than Five Blocks, off Woodward, or call the Wayne State Police ask them do they cover your address. My wife put the phone down to go outside to grab something and was gone for 20 minutes. I called Wayne State Police non-emergency line, and they had a car there in less than 10 Minutes to discover she was outside talking to our neighbor. Also, if you score a property near the Medical Center their Police Force or the VA Police(Veteran's Hospital) will patrol your neighborhood.

The Four Unit home was a little bit more risky but it cost only $60K. So we get $650 a piece for 3 units, and $275 from our guy from church. But we are banking on a major transportation project breaking ground within a year, and that $650/month will jump to $850.

http://www.freep.com/interactive/article/20140413/OPINION05/304130023/michigan-average-top-income-IRS-richest

The Model I see everyone doing is take a larger home cut it 2-4 different ways and rent it out. Live in one unit yourself, or have someone you know or trust stay in one of the units for a reduced amount.