All Forum Posts by: Mike Carino

I currently look to buy cheap and hold in downriver areas (lincoln park to dearborn heights), cash flow like crazy in multiunits in southwest Detroit, and playing around with wholesaling in northwest Detroit with gaining interest from outsiders. 

Would like to attack the BRRR strategy out this year out on the westside on town (Livonia, farmington, redford) the @Joe Villeneuve way :-)

Great clean and clear concise goals! I love the Pacific NW seattle area, and know the huge potential there. Just a bit harder to get the cash flow and IRR you are wanting to achieve. Not saying its impossible, just more limited to areas. Though, I have similar desires to own multiunits in the pacific northwest, I invest in the midwest for cash flow. I'm not selling on city or strategy, but there is ample amount of properties to achieve $5,000 a month cash flow quicker,cheaper, and easier. Best of Luck. Maybe one day we can partner on a West Seattle Apartment :-)

I have heard great things as well happening in Grand Rapids. Great friend of mine with no real estate experience has been begging me to make a purchase out that way. Great little city with huge potential downtown. Do you see a bigger gentrification happening in the area? Never been to the GVSU campus or area

 Eric, why not get more multi's in metro detroit? just curious since your ready to get cash flow right now..  you have the one up with being familiar with the area and know where to go and not to go? We both know the cash flow is here without a doubt. You and your family can live happily away from michigan, if you know what you are already getting into..

 Thanks Frank I will look into it. 90% ltv is very appealing 

@Darin M. yeah I would love to pick your brother's brain. Essentially on the side of my business use, I would like rent out to the kitchen to vendors/ bakers/food trucks that need to commissary space for food prep. Not my main focus but would be nice little additional revenue.

@Franklin Romine My first thought is sba loans. My experience is was very tough for the restaurants but was able to get one and we are watched like a hawk... Than again I am in the restaurant business. This would be a different business plan.   I am hoping to get answers that there are easier ways to financing, more along the lines of getting a mortgage guidelines.

Complete newbie to the warehouse world, so I am hoping fellow BPers can point me in the right direction and start asking the right questions, point me to the right people, podcasts, and books that can help.

I am considering a new business venture in a small commercial warehouse space for a food commissary. My business partner and I run a small chain of restaurants in the Atlanta that has done pretty well over the last few years with steady growth. We are in need of both dry and cold storage and a centralized location for logistics and quality food preparation that we can use for the long and supply the stores.

I am a real estate investor, and stay busy on BP to focus on my residential properties. So I ask myself why rent a warehouse space when I can own the building. One big reason for me is the commercial restaurant equipment, walk-in freezer/coolers, ovens, and kitchen space would have to be converted into a rental unit and will get costly into a building I do not own. We do enough converting with rental store fronts, and this situation doesn’t quite fit the same bill.

Any investors go down the path of opening any food commissary? I am familiar with apartment units, but would this follow the same logic in regards to appreciation? Will equipment and NOI increase the appreciation on a warehouse space? Better to start from scratch to place my modifications, or buy a pre-existing building? My plan would be to essentially leverage the appreciation capital to open other store fronts.

Have not reached too far with banks on the commercial side yet, but wanted to make this its own LLC identity separate since it essentially is a new business model for us. Would they even consider lending without any track record? The credit, salary, and down payment is there to be qualified.

Thanks in advance

Old house like that you cant go wrong with brick

-Think about how you split the water bill, or reflect it in your rent

-Think about how will you take care of clearing the snow to the house, and grass in the summer. Reflect it in rent if you have to

- Know your target market, look for tenants that fit that market and rehab to that market... This will help you decide how much cosmetic work really matters.. 

-Find tenants that will get along

- carpet the bedrooms if it is an upstairs/downstairs duplex.. tenants hate the late night creaks without carpet in bedrooms

-Dont go cheap on plumbing, toilets, and bathtubs its well worth the cost.

Best of luck

I will stay in my 9-5 until my cash flow in rentals surpass my 2x my monthly expenses and until l cannot leverage my 9-5 income for any more mortgages.  I think alot of that mindset for me has to do with the security of my young family.

Until than, I found a job in my field that is flexible enough to pursue my real estate goals, and enjoy ample time with my kids.

Not a condo investor, but why "could" there be a problem to underwriters with rented units?  

Whats your HOA fee and tax? That might kill your cash flow in plan B. Should you be worried about HOA not allowing anymore rental units?

If you do get stuck with plan B, can you cash out refi the majority money you put in at least?