All Forum Posts by: Leroy K. Williams

Yeah, that why I always explain to people that "PROPERTY" management is misleading. Its actually Tenant management when you are dealing with socially disadvantaged and low income families almost always lead by single mothers.  We are developing a system in my office called "T.R.I.P"  which stands for Tenant Revitalization and Investment Program.  The stronger the tenant the more consistent the income for the property owner. 

My family owns a property in one of Detroit's historic districts. It will likely appraise for $250,000.  I want to see about using this property to leverage for a line of credit for $125,000 for flip deals here in Metro Detroit.  How does this process work? I don't believe my credit is strong enough for a conventional lender. 

Typically Section 8 assistance will track along the market rent for low income communities in the area (slightly higher or lower depending on the location).  You should keep in mind that this is low income housing assistance.  Rent assistance is also provided by other factors such as number of bedrooms and if the Landlord is providing any of the utilities. So that can also factor in.  

Vacancy rates will definitely vary based on location. I am in Detroit and there is a pretty big demand for low income housing so our vacancy rate for rent ready units is pretty low, likely less than 6%.  

I come across properties all the time from wholesalers in my network. I added estimates for renovations and projected rent.  If you are interested in deals like this feel free to inbox me.  

 I am a Section 8 Landlord and I can assure you its not that difficult. What type of questions do you have?

Depends on what your goals are. if you are doing it for experience, you should try it in your own market first. If you are doing it because you want the most bang for your buck, travel to a few places (Like Detroit) and go about building your team. 

Just think about it like this, what if you were asking about finding a job? Or catching fish?  If you already know that the opportunity is limited where you are would not migration be the only reasonable solution? 

 Hi Johnathan, 

Why buy turnkey at a premium when you can create your own and scale at your own pace?  

 If you decide to come to Detroit and want to go directly to the source as it relates to creating turnkey rentals, I would love to help you out.  Here is the thing, if you are inexperienced, you should approach this as an opportunity to learn the process as you are investing.  Understanding the mechanics is essential for knowing when and how to scale. 

As it relates to who you should team up with in the inner city.  I will say this, your management team should be right in the thick of it, knocking on doors, riding the neighborhoods, and have an in-depth knowledge of the city. This insight will translate into a better understanding for you as the investor.  

 Hi Joe,

Thanks for the advice. I will pass this on to him for sure. 

My son recently relocated from Detroit to LA.  The experience has been very interesting for him since he assumed as a seasoned home remodeler he would be able to connect with rehabbers out west and do some of the same things there that he does in Michigan.  It doesn't seem to work the same way.  I guess in Detroit we have a larger volume of rehab investing going on than there is there, or the market is saturated with skilled tradespeople and finding good help is not really a thing.

How do rehabbers there typically connect with tradespeople? 

Some of the damage is done, however, there is still the issue of built-up pressure inside your frozen pipes along with the ice, The ice is making the space cramped in the pipes so pressurized water is trapped in there. If the thaw happens too quickly the pressure will burst out instead of easing out. 

Thats why I also suggested opening the valve in the laundry tub so as the ice melts the water drizzles out of the line thus steadily releasing pressure.