All Forum Posts by: Tianyun Zhang

I also talked to some local banks. They lend 70% LTV on commercial properties with a 5 year ballon payment.

Also the agent said we can only see the building after we put it under the contract. But we can pull out if you see something we don't like during the inspection.

@Todd Dexheimer Thank you for your advice. This is going to be my first deal. 

My agent just told me the land contract terms are 75K down with 5-7%, 5 years ballon payment. It's amortized for 25 years with a monthly payment close to 1400.

The sellers agent is kinda reluctant to show all the units because there are tenants in it. But my agent is working for us to see all the units. 

@Hadar Orkibi A 3 bed 2 bath single family house is around 250K in that area.

The only value add part I see so far is to sub meter the water and let the tenants pay the water. 

The building still uses baseboard heating and the sewer in the listing says it's Septic-Existing. The foundation is poured slab. I don't know these will be issues.

Thank you very much! 

@Eric Adobo My debt-to-income ratio is high so it's hard for me to get a mortgage now. 

In Michigan, you can still get an equitable title doing a land contract. I googled around it's all about what the sellers need to be aware when doing a land contract. I was wondering what the cons are for the buyers.

Thanks!

Hi BP community,

I recently came across a 4-plex on MLS. All units are 2 bd 1 bath. It is located in White Lake Township, MI. The asking price is 350K. The rent is 950 a month per unit. The seller is willing to do a land contract with 75k down, 7% interest and 60 months with a monthly payment of 2500. Currently the rent includes water, snow removal, lawn care. I will see if I can let the tenants pay the water.

    I haven't seen the building yet and my agent is working to get more details, but I was just wondering according to the numbers so far, do they make sense? In what ways can I negotiate the deal a little bit more?

    Thank you so much! And if anyone wants to partner in this deal, feel free to reach out to me. 

The broker said he could only share the actual p&l and rent roll after we agreed on the price. Is this normal? 

@Lane Kawaoka thanks for your advice. I have not seen those yet but I will ask the brokers for them. 

@John Ellis The water and heat is paid by the landlord for both apartment. The tenants pay the electricity. 

I agree with you that it’ll be a hassle to drive all the up to Saginaw to do the maintenance and I did not find any property management company there. Maybe you have someone you can refer to? Thank you very much! 

Hi BP community,

    I am a new investor in Southeast Michigan. I am looking to invest in an apartment building of 5-15 units. I found 2 deals and I would appreciate it very much if someone could help me analyze the deals. 

    One is at 625 Owen St, Saginaw, MI, 48607. It has 2 studios and 5 one bed rented for 500 and 550 perspectively per month. The broker said the occupancy rate is about 90% all the time because it is very close to a hospital and most of their renters are hospital residents. The asking price is 270K. It seems like a pretty good deal, but that location in Saginaw seems a little bit rough. I also asked a local investor in Saginaw. He said he thinks the building is overpriced. I did the math and the cash flow seems good.

    The other is at 176 W Columbia Ave, Belleville MI, 48111. It has 8 one bed units. The asking pricing is 475K. The rent is between 550 - 675 per month. It is a much better neighborhood. 

    I am just not sure if the asking price of these two deals make sense or not. Should I offer lower? 

    Also if someone in Southeast Michigan is interested in these two deals, please don't hesitate to reach out to me. I am looking forward to partnering with you.

    Thank you in advance.