All Forum Posts by: Richard Dunlop
Richard Dunlop has started 7 posts and replied 715 times.
Post: Ok detroit-ians.....
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Sidel Murray:
Hello Katherine,
...if you aren't to concerned with appreciation and are focused on cash on cash return its difficult to beat Detroit.
Actually I find the appreciation to be way way above what I would expect anywhere else!
Post: Debt or Leverage of Low interest,what is best plan before retire
- Investor
- Detroit, MI
- Posts 755
- Votes 462
I don't understand the appeal of going out of state to get 10% -15% return.
Can't you get that in your Arizona market?? I wouldn't invest across the street for a 50% return since I can get 200% 300% and more in many areas within 10 miles.
Post: BK 7 complete; Schedule A, Schedule D and a very confused ME.....
- Investor
- Detroit, MI
- Posts 755
- Votes 462
What part of Michigan? I buy properties all the time for $3000 and less that had bank loans previously for $70,000 and higher. The actual cash value of these might be $15-$25,000 and the distressed sale much less.
Post: Detroit investing?
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Janann Chan:
May I know if it's common for the landlord to pay the DTE for the tenants? When I get the house, I didn't need to pay, but then after 2-3 months, my rent was deducted for DTE which accounts for 2/5 to half of my rent.
Could you shed me some light if it's the usual practice in Detroit? I never need to pay electricity for the tenants in other states/area/country, I think it's unreasonable.
Many thanks.
Not at all common!
Post: Should I invest in Detroit
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Dontae Scott:
Hello BP I've been thinking about investing in Detroit and wanted some help before threading into unforeseen territory. What is your overall feeling about Detroit? Is the Economy picking up? What things should I look out for?
I invest in Detroit and in seven different suburbs but have always tried to stop people from buying properties in the area unless they were partnering with a knowledgeable local investor.
Detroit has houses better than 95% of the cities in the US but it also has houses that are worse than 95% of the cities in the US both inside the city limits of Detroit!
Block by block is too general. I usually don't buy a house unless I like the neighbor.
Knocking on the door of the house next door, sometimes it is the solution when I meet a neighbor that has lived there 30 years. BUT sometimes it is obvious THE NEIGHBOR IS THE PROBLEM!
Economy is GREAT. Compare Average weekly wage of Wayne County of $1059 (Detroit is in Wayne County) with the Average weekly wage in Clark County of $843 (Las Vegas) and Wayne county increased by 3.1%. Clark County increased by 2.4%.
Post: Detroit investing?
- Investor
- Detroit, MI
- Posts 755
- Votes 462
I invest in Detroit and in seven different suburbs but have always tried to stop people from buying properties in the area unless they were partnering with a knowledgeable local investor.
Detroit has houses better than 95% of the cities in the US but it also has houses that are worse than 95% of the cities in the US both inside the city limits of Detroit!
Block by block is too general. I usually don't buy a house unless I like the neighbor.
Knocking on the neighbors door, sometimes it is the solution when I meet a neighbor that has lived there 30 years. BUT sometimes it is obvious THEY ARE THE PROBLEM!
Post: Hello from Livonia, MI!
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Simon Cox:
Welcome to BP! Glad to have you on the site. I'll be moving to the area this summer. Can't wait to get started in the infamous Detroit market!
All the best
I've heard quite a bit about THAT market!
Post: Detroit Land Bank Authority
- Investor
- Detroit, MI
- Posts 755
- Votes 462
I talked to a lawyer that gave back 2 out of 3 she had bought in order to get an extension on the one she wanted to keep. She indicated that they were picky but she wasn't sure if they had it out for her only. She made a big stink when they put in the policy of giving a 50% discount on their bids to their friends.
You are bidding against someone that is only paying with Monopoly money. (One half of their actual bid)
Post: Ive got 3 properties with tenants but no movement?!?!
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Agi Anderson:
@Ralph R. what's the 1% rule?
The number they use in markets that don't perform up to the 20% rule we use in Detroit. What % of your all in price can you get as a monthly rental rate?
Post: Cash on Cash ROI...reality check
- Investor
- Detroit, MI
- Posts 755
- Votes 462
Originally posted by @Account Closed:
Originally posted by @Richard Dunlop:
Originally posted by @Account Closed:
Originally posted by @Ali Boone:
@Account Closed
@Bob Bowling the people you are scolding are not 1 issue investors, I speculate that they typically invest using several metrics.
I invest in Detroit BECAUSE of the appreciation the Cash Flow is great also. I expect BOTH to be better than anywhere for the foreseeable future.
The question I would ask (Just ONE of many) "Is why would ANYBODY invest in a market where the average weekly wage is lower than Detroit.
Wayne is the County Detroit is in.
Is this the only metric I should use?
Of course not! Taking everything together I'm glad I relocated to Detroit. FROM one of your favorite markets California.
Actually I believe you are wrong. Here is what @Ali Boone stated, " It's all about the price-to-rent ratio." Then she goes on to express that she thinks this identifies cash flow which seems to be her and Brents focus for investment. I'm just pointing out that The metrics they are using are not measuring what they think. Do you notice how neither have stepped up to explain their thinking?
I'm trying to educate not scold.
As far as your question I can say that the market does not consist of those making the average weekly wage. Hawaii is an international market made up of high net worth and high wage earners. That is reflected in the prices and the supply and demand. Those are metrics that favor a profitable market.
I know your market got the Japanese boost as you have pointed out previously and I do believe you are experiencing and will continue to get a Chinese boost (as is much of the West Coast) but then you and I would disagree from there.
I believe your market has to out price paying tenants at some point while you seem to imply that the "irrational exuberance "can continue indefinitely.