All Forum Posts by: Sara Emmanuelle Dube

So Ive pivoted! Ive hired a more hands-on smaller PM that actually has recommendations and has already proven to be more effective; Ive got 2 paying tenants and one leaving cash-for-keys tomorrow. We are changing the locks and im crossing my fingers it goes smoothly. 

Today, trying to get out of the my last PM contract now. For some reason they called back the inspectors even though they had not finished all the recommended repairs.. so we failed a second time. The disappointment continues. Now I believe there is a fee in order to have them come a 3rd time 🙄.

Both properties have already gained in value according to RedFin, not sure if that would reflect if they were sold but its a positive move. We've put almost 20k and still working on repairs on both buildings.

Thanks for all the great advice,

Sara

Ha ha!! Pivot yes. 

Wow, great job. I cant imagine having 20 units right now.

Thank you for the advice and I wont delay. 

Sara

Thank you to everyone for the feedback. 

My Pm is large but not in charge. 

I know that tenants should pay some utilities however only one tenant is paying rent. My name is on all the bills so they get paid. When the new tenants come-in it will be different. But is that going to happen this year!? Not if I stay where I am. 

Currently the work thats being done is both upgrades and work necessary to satisfy the Detroit City in order to get my rental certificates. Ive decided to make one unit a little more spruced up and see what I can get for it. Im curious. 

I do see the light at the end of the Detroit tunnel its just a little too slow moving for me.

This has been a great learning experience and Ill keep coming on here to learn more!

Oh! And the one tenant that is paying is gold. He doesn't know it but he's not going anywhere. 

Have a great day!

Hello! 

This could help newcomers and I am one also, 5 months in. newbie. BP has been great for me :)

An update here on the Morning Side duplexes we bought in Detroit. Bought Feb 21. Signed with PM March 21st. 

3 out of 4 units are still occupied with only one tenant paying rent and utilities ( Im unsure actually if he's paying all utilities). 

Detroit inspectors gave us some homework to get the place compliant as a rental. That is not done yet. 

Repairs are slooowwww. One team is doing all the work. It appears that the electrician comes to change one plug, and is then hired again the next week to change a plug in another part of the building. Not efficient management. 

Ive run out of time on the trial period of 3 months with PM. We need to pivot now. 

Option 1) Find another PM  

Option 2) Manage from a distance

I've already accumulated many tips so happy to share anyone! But also looking for more advice going forward. 

Thank you!

Sara Moulton

Hey John, 

Sent you a DM - Contact me please I have questions.

Thanks

Hello, Id love to get this thread back up again :) Im also in need of some advice. The existing tenants I have are not paying rent so needless to say they are not paying water either. 

Going forward, it makes me nervous to have these in my name. Signing an Affidavit feels like were just trying to scare them into paying and that really there's no recourse. 

The water department told me that they never really shut down the water unless the amount is huge ( like 10 times what I have past due) but either way i dont want to pay. 

Has anyone ever considered adding a meter? If so what were the costs?

Thank you!

Sara

Quote from @Michael Smythe:

@Sara Emmanuelle Dube too often, sellers of "turnkey" properties do this:( 
The way to address it is by having the seller personally sign reps & warrants, making them liable for this. Can still be difficult to sue though.

A decent percentage of the time this can also be due to low-demographic tenants trying to take advantage of ownership change by claiming, "they don't know who to pay rent to". Our standard practice is to show tenants copy of deed, showing new owner, and a copy of our management contract to show them that new owner legally hired us - so, we're their new PMC. 
--Even this sometimes doesn't work and we have to start the eviction process to get in front of a judge who rules the tenant owes the rent to us (as agent for the owner). Unfortunately, most of the time this happens, the tenants have spent the rent money already and they end up moving:(

Just some of the challenges of investing in gentrifying, Class C areas and why proper management is so important to minimize these challenges.

Thanks for the response. Good to know for the next investment - Hopefully eviction procedures have started on my side. It would make the process of bringing the units up to code easier. 
What do you think of cash for keys ? 
I also was told that tenants can come back and squat. Any way to secure the property?

Thank you in advance, this advice is great,

Sara

Hi Michael, Ive just bought 2 duplexes in Detroit and im going to post here how its going on a more regular basis. You can follow along. 

One thing I realize now is that i received the tenant rolls with names addresses etc so I have tenants in place, with leases however only 1 tenant out of 4 is actually paying. The others feel like they were props temporarily put in place to show "cash flow". 

The 2 side by side duplexes were purchased in February 2024.  March we signed with a Property Manager and May 21st, today,  they are still there enjoying free rent. 

Something to consider when thinking of cash flow....

We are also renovating the units to 1) bring them up to date to get the Detroit’s Rental Property Certificate of Compliance, and 2) Raise the rent. That process has been a struggle. It is very hard to get a bid from contractors, according to PM. Just a little work has been done.

Have a great day!

Sara

Yikes. That would be a disaster. Thanks for the advice @Adam Bartomeo. 

Thanks @Adam Bartomeo for the advice. 

Im hoping everything is settled by end of June, I believe that is when everyone moves around to be in their new homes by July1st.