All Forum Posts by: Mike Kratz

What are some guidelines to find a portfolio loan provider?  I have called 3 local Credit unions and a couple regional banks and have had no luck so…

I might be talking to the wrong person or lender.

Or my situation doesn’t fit into guidelines that you might be aware of :

I currently own 4 investment properties. 1 commercial, 1 condo, and 2 single family homes I have loans on them for $380,000 and the current estimated value is around $850,000.

I am currently working on another house that I will end up selling after repairs. ($284,000 purchase, $65,000 repairs, $550,000 After Repair Value)

I typically prefer the buy and hold model but, the numbers for this house just made sense.

I also have a W2 job

Looking for option outside of my current process of BRRR or HELOC on individual properties. I am only working on 1 at a time and would like to continue quicker for efficiency and scale benefits.

Any suggestions or ideas from those of you have been in a similar situation?

I just purchase a home on Lake St. Clair and just started the rehab.

I have a couple options:

Flip after repair

Short Term Rental.

I am familiar with the flip but not Short term rental. I have researched A bit but, I am not 100% sure how to approach...

Is anyone familiar with Metro-Detroit area / St Clair Shores market?

How do they do? Any advice or discussion would be appreciated.

@Drew Sygit

Touché.

I see the MREI updates and emails but haven’t been able to attend a Thursday meeting. Are they typically well attended?

I meant more in my current social circles.

I currently have a property management company that handles once I rehab. I also have a full time job. Trying to keep it as little of a 2nd job as possible. (I know rehabs take time and effort)

@Mike Kratz

A quick update:

I still own the house in Warren and it has been successfully rented for the past few years.

Purchased a studio condo in Rochester that I am currently updating and it should be listed for rent within 3 weeks.

I bought another complete rehab and it is going through final inspections now. Also, in Warren just a little north. Should rent nicely and is currently listed.

I purchased a commercial property in downtown Romeo through a 1031 exchange from the house in Jacksonville.

I just got another home under contract in St Clair Shores. Another rehab project in my future.

Sold our personal residence and moved not too far to take some of the gains.

So...a couple years and added 5 more doors.

I am looking for easier/less time intensive suggestions and and networking opportunities. Other than BP not many around me are in the RE game.

When I look into a 1031 Exchange it seems that the funds from selling a property are meant to pay for costs of buying a replacement property.

Ex. Purchase price, Agent commissions,

Title insurance fees for the owner’s policy of title insurance, Escrow fees, Appraisal fees required by the purchase contract, Transfer taxes, Recording fees

Attorney’s fees incurred in connection with the sale or purchase of the property, etc.

Items excluded would be items that are not required to purchase the property.

My question is specific to buying a building that has existing tenants. That would mean that their security deposits and pro-rated rents would be transferred at closing.

I was advised by the Qualified Intermediary that the only money I could get at closing was my original escrow funds. I think that I also should have received the security deposits and pro-rated rents since they have nothing to do with the property purchase. Is that right?

I now have a balance leftover in the QI account... if the rents and security deposits were removed from the transaction I would of used all of the funds.

Sorry for the being so wordy...hopefully my question makes sense.

I have an "opportunity" to purchase 11 properties that have 33 total doors.  They are in Saginaw (48602).  I am not very familiar with the market or Section 8...

I am looking for overall advice or guidance for pluses and possible pitfalls.  If there are any investors familiar with either...please reply.

I typically buy and hold to build a rental portfolio.  Most have been buy and rehab to refinance with positive cashflow.

After looking at the Fair Rental values these would appear to cashflow quite a bit...total approx $7,500/month after approx 200K purchase and approx 150K rehab. What am I missing? Is there a high level of vacancy? I typically assume 10% for CapEx and 10% Vacancy...

Is it "better" to try to find a "portfolio" loan that would cover all or individual mortgages?  I would prefer to minimize my capital tied into the homes if possible?

They are currently rented on a month to month.  Is that typical?  I am used to 12-24 month leases.

I would also prefer to hire a property manager to manage and my numbers include a typical fee I am used to paying.

I am somewhat green to this type of investment property so any advice?

@Maria Taylor

Curious how the wholesaling process has gone so far...any luck?

I am currently looking to pick up a couple new rentals and would be willing to putting in some rehab.

Just curious how it has been going for you and your husband.

I am selling a rental house I have owned since 2006. It has been a rental since 2012 and I was just notified the tenant will be moving out March 31.

So, I have a couple questions:

Should I talk to an accountant or has someone been through this before. I am trying to calculate how much needs to be added to the 1031 or how much I can offset based on prior costs. 

And...sounds like I will be in the market for another investment property or two in the Warren, Sterling Heights, Rochester, Auburn Hills, or similar areas. I prefer to find properties in poor condition. Does anyone have a best practice to find such properties?  I have used a Realtor for the last couple but, just curious. 

I am trying to find non-homesteaded properties in Southeast Michigan. I am not having much luck online using the tax assessors websites. 

Is the a way to search this?

I listen to the podcast quite a bit and continue to here about free meetings held in other parts of the country. Does Southeast MI have anything similar?