All Forum Posts by: Theodore B.

Hello BP community,

I am in search of an investor friendly and a knowledgeable Detroit and surrounding area's realtor. Knowledge about the commercial (multi-family) side of investing is also very welcomed!

Thanks,

MODERATOR:  RECOMMENDATIONS ONLY, PLEASE.   NO ADS FOR PROPERTIES OR YOUR SERVICES IN THIS FORUM, PLEASE.

Hello Erik congrats on looking at your first deal both exciting and freaking terrifying at the same time here are some of my thoughts and they are just that my thoughts take from them what you will.

Area- Good area, and good size house. My first question are you looking to wholesale, flx and flip or hold the property?

The central air is nice but being in a C area when and if your unit is vacant how sure are you that you won't have the unit stolen. 

If you have a leak on your foundation, may not be anything too serious, basements leak in Michigan, however if you look around the whole basement wall and you see large cracks then I would worry about foundation issues. You can fix the grading around the property to assist with lessening the leak, but of course that won't be free and with the weather getting ready to change it would be something to consider

So if you need to replace your furnace, look at about $700 bucks to purchase and install, better to be safe than sorry especially when the winter hits..Now what you can do is risk it, see if it works and sign up with DTE for their Monthly core protection plan at about 16 bucks a month, if the furnace goes out and they can't fix it they replace it. you could save some money there. 

Taxes..WOW  that is a lot, my rule of thumb is to not exceed 2K in taxes, granted I don't have properties in Dearborn and I know the taxes are higher there, but if I am going to pay that much in taxes I will need to be in a C+ to B or better area. those taxes are KILLING your cash flow!

Property management...I would say scratch that, you live in Michigan, if I can manage properties 3000 miles away here in Cali, I know you can do it in Michigan. For one property it would not be worth it.

Your annual expenses I agree are low, but if you rehab the property right the first time you should be good for the first year or so and of course you screen the tenants

Annual expense for advertising and admin expenses, seems okay, I would advertise on craigslist for free!

Final thoughts, if you go a few blocks over you are in Detroit and you can get a property for a lot cheaper and heck may be able to get a rent for about 800 a month. Just some food for thought, People will often times use Detroit as a punching bag but I say if you have not tried it don't knock it, heck I have and do try it and I praise and curse it a the same time, but that is with any market if your dealing with tenants. 

All in all I wish you all the best!

Well the $500 properties are both in the Sept and October auctions, its just that if you go in September you will have to pay all the back taxes owed.  I have seen some good ones still around in October, but yes you do run that risk.  

Wayne county has their auction in Sept and October, its usually better to wait till October to participate because the prices start at 500 bucks, unless its a bundled sale or a premium property and then the price jumps to the thousands.  

@Scott K...Trust me @James L was wrong for his title, but hey the guy is going off what he sees and hears on tv I venture to say.  That being said when you say the things you say..u only reinforce the ignorance people continue to perpetuate onto the city and its residents.  

@Scott K 

FYI I am from Detroit...PROUDLY BORN and RAISED in the City went to high school and graduated from college in Michigan. I invest in my city to make money and hopefully help the neighborhoods in the process.

Not pulling a black card, just pulling a reality card.  I don't know if your white or not, never said you were.  

But looking at your profile  ANYONE that uses the word NAZI to describe something makes me wonder what type of character they are.

Again, never said Detroit was a paradise, and no you don't need to be PC, but you should be respectful.  I bet you would not call Detroit residents Hood Rats over on Davison and Dexter.  I am sure if you did, they probably would  continue to shoot at you.  Karma is a crazy thing..just saying.

@ Scott K, what is your deal with Detroit...geeze it seems like whenever you have something to say about the city its something bad...granted you don't like it but when you start to attack the residents you sound like an ignorant racist..EVERYONE from the city are not "HOOD RATS"  

But when you stay in Madison Heights and probably scared to cross over the city lines you will most likely say those things..obviously if you go downtown where you feel safe you will probably say ignorant things like that.  

Its just said to see that people like you continue to spew ignorance when you don't take the time to know the people in the City.  

@Tom A,

By any chance does the group do any teleconferencing?  I want to get better connected with things back in Detroit.  I reside in Los Angeles and it would be nice to get some prespective from people doing what I am doing in an area that I invest in. 

Thanks,

@curt davis  i hit the report button,  by mistake, so if u get anything, it was unintentionally I was just trying to reply...but hey I say to each their own, we all find what works for us, but I just learned to not comment much on things if I have not had the experience or done the research to see if its neither here nor there.  I do wish you luck in whatever market you invest in.

• @Curt Davis --By any chance do you or have you owned property in the City of Detroit?  I think like any city there are pros and cons, and detroit may not be an appreciating, invest in the bubble market like it is in Los Angeles, but it does not mean your throwing your money away.  I mean if I can get a property for 1500, rent it for 600/month and have minimal repairs in a decent area, then I will throw my money away all day in that type of market Detroit or not.