All Forum Posts by: Elizabeth Goff

I'm assuming the 2 months they paid upfront were first month rent and security deposit?  The security deposit is NOT rent.  Even though you will keep it as such, it should not be treated as rent.  So eviction letter should be sent when they miss Nov rent, not Dec.

1. People have mentioned rent control -- the state-wide law is 5% + inflation rate per year.  This is pretty generous/good as a landlord and I'm fine with that.  That said, local municipalities may have their own more strict rules (eg San Francisco)

2.  Emergency declaration anti-gouging laws can be a problem as they limit rent increases to 10% the time the emergency was declared.  In parts of Northern California, the declaration from the 2017 fire is STILL in place. And frankly I don't see this declaration going away.  But in my mind something needs to be done about that legislation.

3.  New state law has also limited evictions to 'just cause' only.  So they need to be breaking their lease.  That said, I'm not sure what happens when their lease is over.  If you want to kick people out for renovations (a common reason in the past) you need to pay them relocation money, not sure of the amount but I remember 2 months?

If I didn't live here, not sure I would have rentals.  Cap rates are really low compared to other states where I"m invested.  That said, it is so much easier for me to rent when I have a vacancy -- I only have a day or so between tenants which is used for cleaning.

Good luck!

@Lydia Woods even for better properties in Detroit it’s a total pain, especially when you’re out of state. I currently have two duplexes (and have done some reno projects) and can’t wait to get out. City officials attitude, lack of good property management, etc etc. And on those really cheap properties there is so much deferred maintenance. I’d personally try a different market.

It's not about morality, it's about LEGALITY.  And someone is doing illegal things on your property, which could come back to bite you, especially now that you know about it.

Wow @Russell Brazil.  It's not always that easy.  In MI the tenant MUST sign off and provide quite a bit of documentation about income etc. I wouldn't call that 'perfectly easy' when you have an uncooperative tenant!

Thanks for the info @Alexander Coleman.  Yes CERA is indeed the program in MI, and it can be instigated by either party, but both parties must provide documentation.  Argh.

@Alexander Coleman thanks for the info.  Can you direct me to the program that landlords can apply for without any assistance/details from the tenant.  So far I only have a state program (MI) where tenants must submit a bunch of info and she's not cooperating...

One option is to work with a group like Real Wealth Network.  They have a network of turnkey companies who renovate houses and sell to investors in a variety of states (also new construction now), and can advise on general returns and price points in each market.  After they introduce you to their providers then you handle things on your own.  So still some work but easier than on your own.  I bought a duplex from their partner in Cleveland (recommend) but would stay away from Detroit for a variety of reasons!  But many markets to choose from.  It's free to sign up....

@Peter O.

Actually they are using their new "Accela" system now. A bit clunky.  

Here's a link to the page with link to that and more instructions on overall process.  Good luck!

https://detroitmi.gov/departme...

I was renovating an investment property in the Boston-Edison area of Detroit that unfortunately caught on fire.  Sad. It was now without a roof and with lots water damage from the fire department's great efforts to put it out.  My insurance company has still not determined if it will be a "total loss" but it is looking that way.

For any insurance experts out here, or others that have been through this, what do they include in "financial interest" in the property (as they will not pay out more than that").  My policy says it is defined as "the purchase price, less land value, plus the amount of money you have invested to improve the property.  I know it includes all hard renovation costs paid to contractors etc, but does it also include other operating costs such as prop taxes, insurance, utilities, security, etc?

My thoughts....

• Add railings (you can buy pre-made vinyl railings for about $100 each)
• Paint trim white to match vinyl, including on face of roof
• Add white trim under the roofline
• Paint screen doors a fun color (I've used Sherwin Williams Indigo Batik before for doors)
• Paint porch floor a dark charcoal grey (blends with house right now and looks blah)
• Some plants/landscaping in front would help too...

Mock-up included to give an idea of what this would look like (didn't do darker floor or plants though!)...

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