All Forum Posts by: William Ware

I would have to agree with Jeff..I still work 50 plus hours a week in my day job..but have found the time to buy, renovate and rent 7 houses in just under 2 years. One key factor is building your team..once that's complete it makes life a little bit easier with a full time job.

Michigan is 1.5 times monthly rent. If you feel you need to collect more than the law allows...I would look for a new prospective tenant.

As long as your lease states your intentions you have every right to enter. I would once again inform her that you will be there on this date and at this time. I would definitely bring someone with me as a witness..just in case.

In my rentals I provide all appliances including washer dryer, window treatments, fresh paint and new carpet (when needed) and laminate flooring. I've installed new stainless appliances in a rental that I rent for $1100 to used appliances that go in my lower rentals ($800/month). I do spend the few extra dollars on crown molding, decent pad/carpet and tile in the bathrooms. I can say that I have great tenants that do appreciate the small " luxuries" and have made comments that they are not leaving anytime soon. I also insure that my properties are energy efficient by insuring that there is sufficient insulation, good windows and good seals around the doors/windows.

Thanks for the reply Kevin..the property is in Washtenaw county as I try to stay away from the actual city of Detroit. Looking further at this deal I was able to get the list of violations from the city and they all seem rather small. Such as a fire extinguisher in the kitchen, changing plugs from 3 to 2 prongs etc. Still working on gathering the ARV and other due diligence.

Jean
Some very good advice from Jon and other posters. There are several areas in SE Michigan that offer up much better deals than the one above. Personally I'm a buy and hold investor in Washtenaw and Wayne county...and have found several great deals with tremendous ROI for less than 35k. Keep pursuing and increase your due diligence and I'm sure you will find a great property. By the way Canton and Plymouth are great areas with terrific schools.

3/1 single family located in a lower middle class neighborhood.
1150 sq feet
Asking price 20k
Partially rehabbed
Newer furnace and WH
Rents $750-$800 month
Estimate 3-5k to finish rehab (my standards)
Owes $9500 on back taxes (taxes $2000/year)
I spoke to the Realtor who is representing the owner (Doctor) and they are asking $20k, owner financing, 11% interest and 5k down. As I continued to dig the Realtor not only represents the owner, but also was the person in charge on the rehab. This was a potential flip that got away from her. There is also several violations on the property due to the Realtor negligence in not pulling permits, inspections etc. I did ask the following:
Would the owner pay all past due taxes.Yes
Why are you selling and not renting/flipping? Too much hassle, doesn't want to deal with the city inspectors..willing to accept the loss
My question is would you pursue this deal? What would you offer?

All I can say is "Wow" at some of these comments. I send a Christmas card with a small gift certificate from Kroger. I will continue to treat my tenants as a customer that puts money in my pocket. After all I did screen them and allow them to move into my property.

Hello and Welcome to BP
As a fellow Michigan investor I look forward to helping any way I can. I invest in the suburbs but know a few investors in Detroit that are doing well. Good Luck

As I'm still investigating my options I thought I would submit my questions.
- Currently own a 2/2 condo with no mortgage. Same tenant for the last 18 months at $825/month.2005 price of condo new 116K I paid 20K cash. Current value based on recent cash sales $40k. HOA fee's $160

- The tenant has asked if I would be interested in selling and holding the note. This is an area that I'm still educating myself on. What terms would I ask for? Should I sell or continue to rent? Here are some of my initial ideas.
20% down on a selling price of 40-45K
5 year balloon
6-7% interest
This would be right around a $220/month mortgage
Do I add this to the monthly rent or drop the rent down to $600 and add the note of $220 keeping the total monthly income the same? Thanks for your help.
Bill