All Forum Posts by: Michael O.

Originally posted by @Robert Graham:

I work with Brent Maxwell at IPS Realty Group. He only works in Detroit and does a ton of Multi-Family business. I can connect you if you would like? PM me. @Kyle Mitchell

Have you used IPS for property management, as well? 

@Grant Rothenburger i hope outsiders stay scared for a few more years. It will only help me snatch up properties before the competition comes in!  

Detroit is a very hot market right now if you know where to look. as @Wendy Patton says, you have to know where to invest. Good to have boots on the ground in and around the city. 

I'm looking at the Bagley neighborhood of Detroit, lots of big brick duplex's under $100k right near upcoming developments, plus it is a stone's throw away from Ferndale / Royal Oak. 

Would love to keep in contact with anyone interested in the area!

Stephanie Pieri have you looked into seller financing as an option? I’m sure if you look hard enough and keep asking, eventually you will find one. Keep working towards it and you’ll make it happen eventually! Keep us updated

Originally posted by @Roy Gutierrez:

@Michael O., that is my thinking as well, my theory is that the big hotels are getting threatened by Airbnbs and they muscled this ordinance into place, the fact that it passed so silently and the mayor was supporting Airbnb being there gives me "corrupt" vibes all over the place. I was about to put all my energies to get a Detroit Airbnb as my next project, now I'm on hold until this gets sorted out. I read an article early this morning (I was half sleep) someone saying from the city that the intention is not to stop the "room" rentals from Airbnb, anyways we should wait from an official response from the city.

 I agree. I'd wait a few weeks till this settles. They are already trying to back-track and create "exceptions"...

http://www.crainsdetroit.com/article/20180209/news...

This was completely forced by big-time private investors lobbying to push AirBnB'ers out of the city. 

They're currently building out a handful of big lux hotels in the city and I'd guarantee this was part of the incentives package the city proposed when trying to lure investors here.

As @Michael Kugler said, though, it will lose.

@Greg Scott, I'm upset that I only now just saw this meetup. Hopefully this one goes well and will spur more. 

Please let us know how the turnout is and keep us updated on additional meetups soon!

@Max Nussenbaum, is Castle closing? I was just in discussion with a friend over possibly contacting you re: management for an upcoming property.

@Jonathan Twombly, and anyone that is skeptic, I would encourage you to come pay a visit to Detroit soon. There are no "ifs" anymore, it's already happening: https://detroit.curbed.com/maps/detroit-constructi...

Rental rates are at a consistent 90+% occupancy. More residential units are being built or rehabbed left and right: http://www.crainsdetroit.com/article/20180125/news...

https://detroit.curbed.com/2018/1/26/16934714/cass...

https://detroit.curbed.com/2018/1/11/16871194/stat...

http://www.crainsdetroit.com/article/20170526/NEWS...

Businesses have been moving back at a consistent clip: https://www.freep.com/story/money/business/2017/10...

https://www.freep.com/story/money/business/michiga...

https://www.freep.com/story/money/2017/08/18/linke...

Detroit has been named by multiple sources as a top tourist destination in 2018: https://www.nytimes.com/2017/11/20/travel/detroit-...

https://www.freep.com/story/travel/michigan/2017/1...

Not to mention the fact that every major sports team has moved back into the city, and I won't even begin to link out all of the new restaurants, bars, and retail that have popped up over the last 3 years.

We still have our hardships, which people have mentioned. The school system needs to be improved, mass transit needs to be fixed, there is still a strained relationship between the "elitest" Oakland and Macomb county politicians not playing fair with Wayne County and the city of Detroit... 

The biggest issue with the population not looking like it is increasing in the city is due to the fact that the outrageous insurance rates within the city keep people from changing their address to the city. They use their parents or relatives addresses in the metro area so they don't have to pay astronomical prices in auto insurance and city taxes. Is it shady? yes. Will it keep happening until there is universal auto insurance reform? yes. 

I'd love to grab a cup of coffee in 5 years and discuss this topic with anyone that is still unsure. 

Hi All,

I'm currently under contract on my first Duplex using a 203k to handle some renovations / improvements and have a few questions re: closing costs that I was hoping the community could help answer:  

PP: $62k

Reno: $27.5k

All-in: $90k

I'm only putting the minimum 3.5% down which would be $3,150. I thought everything was moving along fine, but when I received the initial closing disclosure the total Cash to Close was $11k before subtracting for the EMD and Appraisal.

The issue is; I feel that the Cash to Close is much higher than what I expected. 

Down Payment: $3,150

Initial Escrow payment: ~$2k

That leaves roughly $6k in additional costs and fee's on a $90k loan. Does this sound right, or is the lender being sleazy?

Thanks for any advice!