All Forum Posts by: William Ware

Welcome fellow Michigander...like yourself I'm new to real estate investing. I've been looking as well for REI groups here in SE Michigan. I plan on attending my first REI meeting on Thursday in Belleville. Good Luck!
Bill W

OK here we go. Looking for advice, comments or deal or no deal. As a new investor I think I may have found a good deal on my first multi family property. I've taken the advice of this board and others to look at owning brick/dirt instead of condos/T-houses (my first two deals are t-houses :D )
Here's the details
two family
first floor - one bedroom (needs work to create 2nd bedroom)
2nd floor - three bedroom
full basement
has separate utilities (2 water heaters, 2 elec boxes, 2 gas meters
2008 taxes $2000 (love Michigan and taxes)
house mortgages in 2003 $120,000 and 2006 $125000
Should rent for $1600/month (both units)
best guess..needs $10-$15000 in improvements
most work will be done by self and family (brother is a carpenter)
great area (single families homes)
Sale Price $25000.00
This would be a cash deal
Look forward to your comments
Bill W

Thanks for all of the feedback. I never thought to look at HOA fees as a negative. I looked at them as a positive that I never had to worry about grass cutting, snow removal and other outside maintenance. But that's why I'm here to learn from other investors.
Scott..my properties are in the downriver area. As far as my next purchase..I'm looking for a multi-family or SFH..

I would like to get your feedback and ask a few questions about my first two deals..in metro Detroit.

Deal #1
2/2.5 townhouse with 1550'
1 car garage
Built in 2005
Sold new $140,000
Paid $50,000 cash
HOA $130
Painted, new appliances - $3000
Rented with 1 year lease at $1100/month

Deal #2
2/2 raised ranch townhouse with 1100'
1 car garage
Built in 2005
Sold new $118,000
Paid $20,000 cash
HOA $130
Painted, new appliances, floating floor - $3000
Rented with 1 year lease at $825/month

I do my own property management

Questions
- What are your thoughts?
- I would like to try to leverage these properties to purchase additional deals....but no luck with the banks...options?
- should I form a LLC? why?
Thanks for your help

Bill

Hello my name is Bill W. and I'm a new to the world of real estate investment. Over the last several months I've purchased two rental properties in the Detroit Metro area. Both properties are rented with great tenants...and I'm currently looking for a third property. Thinking of a multi-family purchase. This site has been great and I've learned a lot with and have a lot more to learn.