Investor · Detroit, MI · Member since 2016 · 61 posts · 86 votes
Hi BP! I have been interested in real estate for years and this summer after listening to a bunch of BP shows,I finally purchased two duplexes. Both of them are challenging and I knew there would be a huge learning curve... Anyway, I am very motivated to make this work...and buy more. I know there is so much opportunity out there if I just have the information and network. I would love to learn from anyone who has been doing this a while... Of course I have a lot of specific questions too.
I have owned apartments in both those areas, a 4 unit on Goulburn and Nashville, and a 32 unit on Tyler and Dexter. Both I stabilized and flipped. These are difficult areas.
Hey! good to see your putting to action that's amazing I have a couple properties also and one of the best things I've ever done was intern at a big time property management firm and that was eye opening many blogs and podcast don't talk about property management but its so important to learn that side. Whats most challenging for you right now?
Thank you Jamiel! That sounds like it would be eye opening. My current challenges: I am rehabbing 2 units and working with a contractor. This is my first time ever doing anything like that. I also have a stayover tenant in one of my units, who I took to court to evict and we ended up coming to a short-term lease.
I do have a question as far as in Detroit, Is it wise to put out a "FOR RENT" sign? It seems like that will advertise to come in and scrap or vandalize...
Anyway, do you have any advise for gathering good tenants in detroit?
I didn't have to put a for rent sign in the Detroit houses driveway I used craigslist, newspaper, and such and got many calls so for me wasn't a need didn't to even risk it. Detroit Free press Newspaper in Detroit actually worked better than I expected.
I do but is a lot to say in the forum but I wasn't afraid to say no! I gotten many calls and if I felt the slightest feeling that things didn't add up I didn't go with them but its some things I learned from my contractors when getting tenants I can share with you just message me when your free.
Also, I made a property management company to separate myself from them knowing I'm the owner even though I am and it helped so much. Made saying no to people who did not have the money, the credit, late paments and other things much easier and protected me a lot more.
Its a lot when renting in Detroit so much lol but worth it I love it!
I pull furnaces and water tanks from all my vacants in Detroit. I do not use for rent signage. We do market by syndication via our property management software service, which blasts to Trulia, Zillow, etc.
I have a few hundred rentals and have been doing this in Detroit for 12 years.
I pull furnaces and water tanks from all my vacants in Detroit. I do not use for rent signage. We do market by syndication via our property management software service, which blasts to Trulia, Zillow, etc.
I have a few hundred rentals and have been doing this in Detroit for 12 years.
Brent, I think I need to talk to you... I went to your website looks like I could really learn a thing or two!
My one duplex is being rehabbed and it is gonna be ready 2nd week of January.. Should I start advertising or not? I don't really have any pics of it yet.
What do you do?
Jamiel, Thank you! It is exciting. I am leaning towards property management... instead of just doing it myself.
I have owned apartments in both those areas, a 4 unit on Goulburn and Nashville, and a 32 unit on Tyler and Dexter. Both I stabilized and flipped. These are difficult areas.
Hi Rebekah, I see you have properties on the west side of Detroit and east side. I would go ahead and start advertising but until the house is actually renovated I would maybe consider asking a family member or friend to possibly stay in the home until you find tenants due to the areas you don't want any damages to the property since your currently investing money into the properties. Also if you don't have already I would also suggest putting insurance on them.
Brent, that is impressive. I want to learn how to do that. I started in these areas because I had the opportunity and I decided if I didn't do it now, I would keep putting it off. Knowing there would be challenges, and that I really have no idea what i am doing, but i was careful about which properties i choose... but it's worth it.
Kristen, good idea. I don't have know who I would put in them to watch them. I will have to think. Do you have any insurance for Detroit properties that you recommend? I have been looking and saw a thread on BP about it...
@Rebekah Keller For 48205 & 48206, a mainstream provider like Allstate or State Farm will probably quote you $1000-$2000/yr. That's a ballpark guestimate, but this is from quotes I've received over the years for homes in these areas or slightly better zip codes.
Take a look at NREI / REI Guard. They have a different insurance model, which you can read about by searching the forums or talking to them, but the costs are substantially less for basic structure coverage & liability protection. I can give you a contact if interested. Just shoot me a quick colleague request. Don't like posting contact info in forums.
@Christian Hutchinson 48205 gratiot & gunston 48206 dexter & davison the neighbors for both are life long detroit residents looking out for each other
HAHA I grew up at Connor and McNichols(neigborhood where De La Salle use to be)
I use to hangout at that basketball court on Dexter and Davidson it use to be really nice 2003-2007ish. That neighborhood Southwest Corner of Dexter and Davidson is actually in very good shape. You'll be pleased with your neighbors and your tenants I imagine.
Gratiot and Gunston...thats a little more interesting. You have Ravendale who is an absolute warzone, then going up Connor heading towards Outer Driver is nicer.
Both would be outside my comfort zone doing Detroit investing.
My standard thing I'll say: spend some money on exterior lighting(dusk to dawn, motion sensor, high powered lighting). If the home has windows less than 4 feet or going into the basement just glass block them in, or board it and put a piece of metal behind it to brace it. Fence in the backyards(expensive $$). Maybe put in one or two exterior cameras. It will help with your quality of tenant, they can remotely login via smartphone, but it also allow you to keep a pulse of whats happening on the property. Exterior lighting might cost $600, camera system another $1200. Doesn't help your property value but your tenant quality will improve.
I put stainless steel appliances, new window AC units in my property in the North End. People thought I was crazy, but It drew enough leads from quality renters, I finally hooked some good ones after 3 weeks or so. I used CL, and just Zillow Rental Manager(it posts to 30+ sites with just one form).
I ventured out on the recent tax auction I bought a place at East Grand and Charlevoix for $600. Its a duplex also. Place needs work, I'll probably start once the weather breaks in Feb.