All Forum Posts by: Ben Parr

Richard, I own 10 rentals in that city. Feel free to reach out to me.

I have a rental I've had for 8 years or so and I'm contemplating an exit. Bought for $32k with about $20k in rehab, now worth $150k. One possible exit is to tear down the rental and put up a new build. Build cost $200-250k, ARV around $500k

If I did so would that disqualify me from doing a 1031? If so, if I rent it for a year before selling would it work then?

Thanks in advance!

@Brian Garrett No, cashflow isn't that good. taxes and insurance, maintenance, etc. are not included in the LC payment. If I had to guess I'd say I make about $250-300/month on that. I also self-manage, so no management fees. 

I got the deal from one of my mortgage brokers.Before the crash he did assett based lending and ended up taking the property back in foreclosure.

@Hannah Wilkinson It's been good so far. I have it rented at $850 right now to good tenants. My biggest concern is how that area will fare during the next economic downturn. While the economy is doing well I'm not too worried, but if it tanks then I think Harper Woods will be hit pretty hard.

Also, during rehab someone stole the hot water tank. It was a bit odd though, as they left the fridge, stove, washer, dryer, etc. 

Second on Recasting, it is my understanding that Fannie/Freddie loans allow this. My understanding is that it keeps the term the same, so if you were 5 years in on a 30 year it would essentially be a new 25 year mortgage with the same interest rate as your current loan at whatever principle level you are currently at. I am no expert on this by any means, but I think I heard you can only do this once during the life of the loan, so if you plan on continuing to pay extra you may only get to do this once.

@George P. It's a 1 bedroom. I bought it for 13k. It was one of the first rehabs I had someone else lead and I had to essentially re-plumb the entire bathroom and do some drywall repair for the unit downstairs that had some water damage so I'm almost another 13k into it (Ouch!) That said it is sharp looking and rented super easy. I'm getting $750, with $215 in association dues. Now that my crew has some experience they could probably do it for half to 3/4's that price.

I am under contract to "purchase" a house in Harper Woods, MI. 3 bedroom, 1.5 bath, no basement, no garage, but it does have a family room addition off the back. I'm getting the house on a 0 down $35k fully amortized land contract paying $325/mo for 12 years. The house is in pretty decent shape, it needs paint, the carpet needs to be cleaned and re-stretched,  some misc cleaning, and yard work. This is my first venture into Harper Woods, and I'm a bit concerned about the area and what kind of tenants I'll be able to find for the property, the area is a bit rougher than I'm used to operating in. That said houses seem to rent for $850-$1,000. All in all it should be a good one for rental number #38.

Congrats George! I picked up a condo in Redford at the Wayne County Tax Auction last year. My first condo experience. Luckily I am able to rent it out, at least for 1 year, and longer if I can get board approval. I think they won't complain as long as I screen my tenants carefully, but if they do I will probably try selling on LC as my backup strategy. Sounds like you got a heck of a deal at 8k!

Property management company is seeking a full time Maintenance Tech to help with a growing portfolio of single family rental homes. We have larger rehab jobs, tenant turnovers, maintenance calls, landscaping work, etc. Most properties are located around Madison Heights or Redford.

Must provide your own:

- Basic Tools

- Reliable Transportation

I'm not that familiar with South Redford, but from what I've seen listed, and from the way you do your remodels, I bet you can swing that. I'd probably try for $1,250 unless the market softens up before it's ready. I just rented a 3 bed that was clean, but not pretty for $1,050. It did have a 2.5 car garage and basement, and a big yard, but the kitchen was probably 30 years old at least. I didn't even paint that one.