All Forum Posts by: Jana Larko

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*This link comes directly from our calculators, based on information input by the member who posted.

Home is located north of I-94 in the Moross-Morang/Harper Woods neighborhood, next to Grosse Pointe. We met the current tenant and toured the home. Nice close-knit block; the type where folks will move in and stay for several years and watch out for one another. Short drive to Ascension St. John's Hospital and planned economic development projects on east side of Detroit. 

Home needs work.

New hot water tank. Tenant has been living months without hot water; current slumlord refuses to replace. 

Roof needs full replacement. Tenant states that water leaks into living room where the sloped part of the roof meets the flat part of the roof. Leaking began only over the past years so we anticipate roof replacement should fix this issue. 

After the Detroit pump failure in the summer of 2021; the current owner did not assist the elderly tenant in handling water in the basement. Her items remain down there, growing mold. Most of the basement is brick, there is some wood paneling that would need to be torn down. We anticipate need for basement debris/junk removal, mold removal, and sanitation.

Cosmetic improvements...tear up carpet, install vinyl flooring in entire house. Update bathroom vanity.

We are budgeting $30k for above work; and, still anticipate $500/month or so in cash flow. \

Any and all thoughts welcome.

Specific Questions: 

1. Is my $30k estimate reasonable? 

2. Home is listed for 75k; we are hoping we can get the home for at least $62,500, if not less given the need for a new roof, and mold issue.

3. We are hoping for recommendations to reliable and competent contractors for the roof, mold sanitation work, etc.

Wow, Travis! We are impressed. We'd really like to discuss Detroit investment more with you. Would you be open to setting up a call with us?

There are MANY MANY reasons we are afraid to invest in Detroit...primarily though we are concerned about reliable and responsible tenants that can pay rent on time, the red tape that comes with accepting Section 8 vouchers, and that we don't really see the area appreciating.

We admit thought that all of the above are assumptions we have that are unsubstantiated.

Would love to discuss with you further.
@Travis Biziorek

Four-plex option in Grosse Pointe Park

https://www.biggerpockets.com/analysis/rentals/275628c0-7927...

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*This link comes directly from our calculators, based on information input by the member who posted.

Hello! We are thrilled to join this community! My husband and I just joined Pro after watching Dave Meyer's webinar on Small Multifamily Properties.

Here is where we are with our portfolio. We own a duplex in Grosse Pointe Park right outside of Detroit; we live in one unit and rent out the other. We also own 3 additional condos/townhomes in South Philadelphia, Fairmount (Philadelphia), and in Dallas.

We are ready to expand our portfolio; but, are unsure of next steps.

We are considering properties that are ~150k in Jefferson Chalmers, or a four-plex in Grosse Pointe Park for ~500k.

Jefferson-Chalmers is a developing lower-income neighborhood with revitalization efforts underway; the neighborhood is also in a federally designated floodplain. In comparison, Grosse Pointe Park is a well-developed wealthier suburb with great schools, neighborhood parks, and a downtown area with restaurants, shops, and services. Most of the multifamily options are walkable to and from the downtown strip.

The four-plex will squeeze out all of our savings for the downpayment; and the Jefferson Chalmers option will keep us with extra funds in reserves. There is also talk of great revitalization in Jefferson Chalmers over the next few years that could result in a huge increase in property values. The area has already started developing over the past few years and the progress is noticeable, properties values have already begun to increase.

We are looking to expand our portfolio in the Detroit metro region for a variety of reasons including affordability, the fact that we live here, are familiar with the communities, the tenant population, etc....and finally to move towards my goal of working as a real estate professional for the tax benefits. We just need more units!

Attached is one of our options; I will attach our other options as well. Thank you!