All Forum Posts by: Kyle Manduch

Princella,

From my personal experience within the city, that can become a difficult situation.  If you live in Detroit, or nearby -- it may not be too bad, but I live near the city and have ran into that situation and it just nags on you month after month after month.  I would have to go to the tenants house multiple times a month to pick up pieces of the payments.  Luckily he was paying, but still - the time, the effort, the times I had to file a notice ... and usually that tenant didn't keep up with the property, nor had any pride in it.

What are of Detroit is this located in?

Best of luck!

Welcome Will, there is a really solid team in place in here for Metro-Detroit/Detroit properties.  There are deals to be had by all.  If you're looking for any wholesale deals in the city proper, or Wayne/Oakland/Macomb, let me know. 

Ahmad Nassar - welcome. I've had the I 75 food truck and it was great, good job! We heavily invest in Southwest/Mexicantown, right down the street. There is always great opportunities in Detroit. I wouldn't say there are no deals in Westland or our area of Dearborn, but it's tougher and depends where you target. Dearborn is/will be a solid play due to Fords huge investment to the campuses, but the only catch is property taxes. That's where Heights and other surrounding areas are key. Are you looking to buy/hold, flip or wholesale? Kyle

Sylvester Brown - do you also work with any out of town investors (rather they be out of state or our of country?). Looking to buy product - or are you active in MLS? My close team of investors is pretty much local and I'm always looking to expand to more people. Welcome!

Brandon Foster - great reminder. Those are the worst. Very crucial to go down to the water board and take a look at the properties you're interested. If they aren't paying taxes, they aren't paying water...ha. I just got a place last year for 3k, but it had a $600 water bill attached. Luckily, if you go down to the water board downtown (I think max 3-4 at a time) they will waive if you purchased in the county auction.

@Darren Wendroff - When making a trip up here, I would take a look at the map and take a look at the "hot" neighborhoods as specified above.  There are specific reasons for each of these neighborhoods to be hot, such as money being pumped in from Quicken Loans, Federal Money, or have been hot for the last decade.  I would tend to look at spillover areas.  These are areas that are next to these neighborhoods which you can find some really good deals.  For example, if you were looking at Corktown, which is a really hot neighborhood, I would look at North Corktown, Core City, Hubbard Farms, Southwest Detroit even.  People aren't shying away from living in these areas, if you give them a good product.  I've partnered up with @Mike Carino on a few of these deals the past few years, so he has experience here as well. So far, these are where the best ROI's we have seen in the city are occurring. It's speculative, but isn't all real estate? Just my thoughts. Anyone else have experiences in such tactics?

The burbs are great, but if you want lucrative cash flowing properties, check out Detroit.  There are what I like to call spill over areas, which border already established, high rent areas such as Midtown, Corktown, Woodbridge, Downtown proper.  

We've had great luck in these areas as many people would like  1) cheaper rent obviously 2) a backyard 3) a pet, 4) off street parking.  Many of these downtown areas do not offer that.  

I do agree you must have boots on the ground, you must have a trusted PM and you have to have a good team for all of this, but that's pretty much every other area too, right?

@Candace Jones - check out their website, it should answer any of your questions.  That is in September, but if houses go in October, they typically lower all prices to start the bid at $500, and all back taxes are wiped clean.  Pretty good deal if there are decent properties left.  I've never dabbled in Inkster, there may be some good value plays there.

http://www.waynecounty.com/treasurer/795.htm

Candace Jones - Wayne County Treasurer's Auction of Tax-Foreclosed Properties. People don't pay property taxes for 3+ years and the county forecloses on them. Starts in March, and then the true auction occurs in Sept/Oct. There is a list on all properties going for tax foreclosure.

Kyle Holsey - Me and my team are in Detroit as well as Metro, always looking for deals. Another great resource we use is the list for the Wayne County Tax Foreclosure Auction, which happens every year Sept-Oct. We have been doing it for years and find our best deals, as we've implemented systems, etc. We can chat if interested.