Finally found a deal! Need advice

5 Replies

Hello everyone!

Finally, I believe I have found a deal that the numbers make sense.

This is a off the market single family home that was inherited to a family member.

Its in the City of Westland MI. 48186 (Shack town)

Single family

2bath 1 bath Sq. Feet: 1,218

2 car garage

Cost - $45,000

Rent should be $700-800

Needs - Paint and carpet.

The home is much nicer than 95% of the homes in the area.

This really looks like a good spot for me to get my feet wet.

I dont think im over looking anything. 

I ran the numbers and im coming up with an ROI of 42%?

That seems way too high but, I dont know what number im plugging in wrong.

Taxes have been $800 annually for the past 8+ years.

and I have 1300 in for the insurance.

Down payment of 20%

One thing that she did mention to me is that they have a quit claim deed on the house.

What exactly does this mean for me and what extra steps should I been taking?

Originally posted by @George P. :

Not all of 48186 is shack town. 

I have 40 total,15 of them are in westland. I'd never buy in shack town. Ever

I understand not all of 48186 is shack town. That is why i figured id mention it.

Why would you never buy there? I understand its a D class neighborhood but if the numbers make sense, they make sense, right? 

Really looking to make the right move here so any advice is appreciated. 

Because I want high end tenants. I want people with jobs. I have tenants that earn 150k. You combine 400 people in shack town and they collectively don't make 150k.

Originally posted by @George P. :

Because I want high end tenants. I want people with jobs. I have tenants that earn 150k. You combine 400 people in shack town and they collectively don't make 150k.

You're just saying this isn't your cup of tea... Fair enough. 

This is a FSBO. I also dont have a agent either.

How will this process play out?

I plan on asking my lending tomorrow. It would be nice to have some idea what im talking about before I speak with him.