All Forum Posts by: Michael Helfant

Ok I'll bite...Southeast Michigan/Metro Detroit. 

Doesn't even necessarily have to be Detroit City Proper, but the ring suburbs as well. In those ring suburbs that would be your C+/B- type areas, pretty typical SF deals have numbers like below. 

Purchase Price: 80-130k

Rent: $1200-$1500

CoC: 12%+

There is MF opportunity here as well. Like everywhere else, MF inventory is lower than SF inventory, although the deals are still out there. 

Overall, just a good place to get in at a lower price point and protect yourself with cash flow in areas that are also appreciating (yes, still appreciating now as well). 

Hi Jason - Our team works primarily with investors and has closed ~150 deals in the past 6 months ranging from smaller SF to small apartment buildings. We have a pretty extensive resource list as well for other resources that might be helpful for your situation as well. 

Can't speak for Houston; however, it's definitely out there in different markets. I'm in SE Michigan, so I know you can get it here. We've closed 100 deals this year so far and I'd wager all of them that weren't primaries met that criteria. 

1% rule doesn't necessarily = a great deal, though. There are taxes, insurance and other expenses at play. For example, I know there are certain cities in Metro Detroit that we close in that are easily 1% rule deals, but taxes make it where there isn't a ton of cash flow. That being said, there are enough C+/B- type other cities where it isn't a problem and you'll get your 10-12%+ CoC and $300+ cash flow.

Like @Minna Reid said, 2% is another story lol. Not going to find that unless in a pretty rough area most likely. 

I'd always recommend you or your agent calling the actual rental/building department at city hall. Those STR laws change frequently, so worth calling, AND it generally is the quickest way to get an answer. We do it each time we get under contract on a property, and it only takes a few minutes.

 In our market, in these A market areas that are super desirable, yes. The sellers are commonly having to give up occupancy on the home they are headed to, so they expect it and actually *need* it on their sale as well. 

I wouldn't worry too much. There is a decent chance you have a deposit written into your contract so a small safety net. And, like others have said, the likelihood of something going wrong here is super small. If you love this place, it's certainly not a reason in my opinion to bail and get back out there in a climate where rates are probably going to be higher in a month. 

@Greg R. - I think that's a little aggressive of a take. Awesome that you were able to pull that off in January. Really, that is great. It's just not the norm right now for most buyers out there, and I think that's fair to say. Buyers who bought 1 year ago and included all of these terms are glad they did. You can have a realtor that understands the market, helps facilitate a competitive offer over listing, etc., AND not be a "loser." 

A lot of this is dependent upon some of fine print in the PA, and you're agent should be able to answer the questions with regard to who is responsible for what, so I don't want to speak too much to that. 

More so, I'll speak to what is "normal," at least in our market. Especially when the seller is a primary homeowner, that occupancy is common. We see it up at 60 days occupancy a lot of the time, too. And, it is often also that FREE occupancy I think you're referring to here. Basically, they are responsible for all utilities, however, the taxes are prorated beginning the day of close and you are responsible for mortgage payments if there are any before occupancy ends. Most likely, this occupancy really is what got this under contract for you. If you didn't do it, they would have found someone else who would have. 

Another win here might be that you won't even have a mortgage payment before they move out. If you close in June, your first payment isn't until August 1st. 

@Drew Sygit has it right.

On FB (you may already be in this) - "Metro Detroit Real Estate Investors Group" is a good one, too. There is some chirping and randomness to sort through; however, some decent nuggets here and there. 

Non-Homestead will be the correct one to use here, assuming you are going 2-4 units.

Good Morning - Looking to connect with investors/agent in St. Louis who are fluent with the opportunities in that area. Namely, looking forward to learning about what strategies/areas are people having a lot of success in currently. 

I'm an investor and agent in Michigan; however, I grew up in St. Louis, MO and am looking to pick something up in that area.

Thanks!

Most of us in this thread are agents who are incentivized to have clients use agents. That being said, on the buy side, you don't even pay the commission of the buyer agent, and you truly will get someone who negotiates as a fiduciary in YOUR best interest only. 

If you reach out directly and use the listing agent as your agent, like everyone else said, they are going to get both sides of the commission rather than just discount to the buyer. While they will sign a contract wherein it states they are supposed to represent you in their best interest, too, for some sometimes there is innate pressure/motive to just get the deal through to close.