All Forum Posts by: Samson Kay

Hugh,

Unless rules changed in the last 6-8 months you should be able to move into a 3-4 family unit and still only have to put down 5% or less if its owner occupied. I bought my first place this way.

I've had a lot of success with smaller local banks and credit unions. I would go there before committing to a bank.

Search the forums. Lots to learn here.

Theres a new ROBOCOP movie coming out soon based in Detroit I think.

Crimes still running rampant in the not to distant future.

The listings I've seen have listed about 80%+ occupancy. Upside based on numbers. and rents seem low. BUT, theres a ton of competition. Anyone have an idea what the vacancy rate is?

@Scott K.

@Scott K.

I only bet on black @Roy N. LOL.

But to your comment, that can be said about basically anywhere in the country.

I understand that due diligence is in order but on purely a cash flow perspective at those prices and market rents any property would be a good deal if the vacancies are manageable. A 350K property is useless if there's no one to rent too. Or worse, I have to drop rents so low that I invite unsavory characters to my building.

You dont know what you dont know.

So can anyone tell me from personal experience in the area, what there thoughts are for Detroit. Vacancies, job growth, education, public grants or assistants to help propel economic prosperity. Things like that.

Without some "boots on the ground", I think its pure speculation that detroit would be a bad long term investment or a good for someone out of state.

I understand.

I was actually offered an engineering job in Lapeer. And now I'm waying my options and deciding whether or not I should take the position.

My team around new england is pretty well established so I think I'd be ok leaving and setting up show elsewhere.

The question?

To detroit or not detroit?

I know some people on here have some opinions about detroit :::cough::: @Joshua Dorkin

A 39 unit building in Palmer Park is selling for 350K+. Another 140 unit building is selling in the low million just outside of detroit. I just got offered an engineering job that is seeking talent to expand operations outside of the state so from that standpoint it seems that jobs are comming back.

For an investor from New England, the prices are outrageous... in a good way. To buy a building like these even at subpar rents and to hold it for a decade if industry is coming back to detroit would be a good long term play in my opinion if the socioeconomic factors are trending in the right direction.

What do you guys think?

Well basically, I have a relative who has poor credit and no money. I have money, (not as much as I'd like) but if leveraging a first time home buyer, my funds could potentially fund acquisition of another quadplex.

The question becomes what would be required? My relative, who is a part time student, does not make a ton of money. But he's interested in getting into real estate. I figure this would be a good entry for him to make some cash flow, get management experience for no money down and live for free, and for me to get another line of passive cashflow for a small upfront investment. So I just wanted to see if this was even viable.

I am constantly on the prowl for strategies, which is why my posts are always about how to purchase real estate.

What kind of info do you need? I'm will

I wouldn't try to do anything fraudulent. I would fully disclose myself as an investor with interest in the potential for cashflow. I'm sure we set up a partnership agreement where I would provide the down payment, with the partner as the owner occupied. In return, I get 75% of the cashflow and equity.

Something like that? Just wanted to see if that were possible.

Is it possible to partner up with a first time home buyer with no money to buy a quadplex? What are the loan and legal implications?

I assume that some sort of LLC or partnership deal would need to happen first. But I was wondering if a residential loan would take my credit into account or both our credits?