All Forum Posts by: Kimberly Johnson

@Carlo Gobba @Drew Sygit Thank you both for all of your advice. I will add myself to the deed eventually as things progress in a good direction. I am not tied to any debt here and I think that left my options for investing way more positive. I've been looking at lake houses for Airbnb in Dexter, White Lake, and Lexington. For longer term I would prefer the ring cities. The ABCD 1% breakdown is helpful. I am terrified of renovations bc I don't have a hard money lender and have limited funds closer to 60k to start. I'm ready to get my feet wet with a turnkey for long or short term rental. The BRRR in 6 months would be ideal to keep things moving along. I hear that isn't so likely - maybe closer to 2 years with this market.

Hey everyone! It's been awhile since I've been on the forum. I've been bus leaving a stressful job, starting a new one and finally selling my home. The market is changing a bit out here for sellers. More homes on the market and fewer buyes... I have the appraisal this week and I feel pretty confident it will go smoothly. Meanwhile, my bf and I found a home in Farmington. I think it's overpriced and won't appraise for their asking price. But we gave them their asking price just to beat the other offers. The comps say it's worth about 100k less. Fingers are crossed the appraiser is a good one. I have two questions:

1) I am debating on being added to the new mortgage because I worry it will impact my debt to income ratio and I want to invest in other things like rentals. One lender already told me he wouldn't work with me if I was on our new mortgage. My bf is approved without me so it's not a requirement. Any thoughts on this?

2) Lastly, this property just came on the market (link below). I can buy it straight out for 10k + the DLBA tax fees but wondered what the experienced Detroit investors thought about the cost for renovation and the area. The home values in the area, though not apples to apples, are in the low to mid 100s. 

https://www.realtor.com/reales...

(2088 Virginia Park St, Detroit, MI 48206)

I appreciate you all's wisdom.

Kimberly

@William Costello I have family living in Stevensvill, MI which is right next to Indiana. They said plenty of people are moving into her area as well. I will definitely look into that. Thanks for the cities. You are so helpful. :-) I would imagine it's competitive with everyone flooding in. 

Kimberly

Hey everyone!

I'm looking to sell my home to raise capitol. I'm thinking about an owner occupy with a 203k loan on one of the properties below.

One is in Tecumseh, MI and the other is in Berrien, MI. Both areas are fairly new to me. I'd be looking to do some minor updates while living in one of the units for a year. 

https://www.realtor.com/reales...

https://www.realtor.com/reales...

Has anyone lived in either area who can give me an inside perspective. The Berrien property seems prime being so close to a university, but it's been on the market a really long time. The Tecumsey property is more than 4 units. I would convert two units into one to avoid the commercial loan.

Thanks for any feedback!

@William Costello Hi William. I had thought about OH but don't know the area... I don't even know Detroit, MI yet, but I am certainly learning on BP. I don't know anything about IN but would consider it since I have family very close to that area... thinking of moving out that way. Can you recommend certain areas and the type of property I should look into as a newbie? Just to note, there is a team in Chicago that is eager to work with me as a graduate of their real estate class.

@Drew Sygit Thanks for the great blog. I am now looking in the Hazel Park area. Lots of single family homes at 100k or so. Here is an example: https://www.realtor.com/reales... Could I go with $1325 per month for this home with an expectation $400 cashflow after mortgate, PM and repair savings fees?

Wow! The wisdom you've shared is priceless. Thank you both so much the real scenarios and crunching the numbers. I NOW have a new longer term perspective on the BRRR method. Cashflow for the first year or so is realistic, but it sounds like the location and quality of renter is super important to "lower" the risk of being sued, cost of evictions, and having my appliances stolen!!! I may look at the suburbs of Detroit, as suggested by someone earlier in this convo. This means I may pay a little more for the property but the area may mean higher cashflow. Another take away is to do minimum updates to make the property liveable. Does anyone add a "clause" in their lease related to the first $100/200 of repairs being the responsibility of the tenant? Has it worked/not worked? Also, I considered condos downtown for Airbnb. I just hate not owning the land and structure and of course paying HOAs. Are either of you doing short term rentals? @Paul S. @Christian Hutchinson

Wow! The wisdom you've shared is priceless. Thank you both so much the real scenarios and crunching the numbers. I NOW have a new longer term perspective on the BRRR method. Cashflow for the first year or so is realistic, but it sounds like the location and quality of renter is super important to "lower" the risk of being sued, cost of evictions, and having my appliances stolen!!! I may look at the suburbs of Detroit, as suggested by someone earlier in this convo. This means I may pay a little more for the property but the area may mean higher cashflow. Another take away is to do minimum updates to make the property liveable. Does anyone add a "clause" in their lease related to the first $100/200 of repairs being the responsibility of the tenant? Has it worked/not worked? Also, I considered condos downtown for Airbnb. I just hate not owning the land and structure and of course paying HOAs. Are either of you doing short term rentals? @Paul S. @Christian Hutchinson

@Christian Hutchinson. I've lived in MI all my life but I am not so familiar with Detroit and learning more about real estate investing every day. Like @Drew Sygit and @Paul S. mentioned, I would have to do the math to know if it would be worth an attempt at a BRRR. My guess is it needs more than paint. The ARV is pretty low based on the local properties.

@Kunal Mishra Thanks. I actually did the template yesterday and plan to submit it today. Does it matter if I have a partner or if I am the sole member? Do I really need the virtual address, phone number website, and email address? I used my personal information on the operating agreement forms.