All Forum Posts by: Mark Yuschak

I already know that Michigan is a non-disclosure state when it comes to deaths. I know that for fact (I'm a broker in the state and it's been covered routinely in various classes, etc.).

I'll check into local codes to see what they call for.

In the mean time, all the windows are open. The door is locked, but the windows are open and the ceiling fans are on.

Just as the topic title states..

I got the call earlier today from a neighboring apartment. That tenant was complaining of an odor and asked if I had heard from the elderly lady next door. I hadn't. He took it upon himself to call 911. It's a good thing he did. When the police arrived they found my tenant deceased.

It is estimated she could have been there for as long as three days.

The odor was horrible (and is still lingering).

Anyone have any advice on how to remove that smell? Any "been there, done that's" would be helpful.

My lease also contains an element addressing the fact that the tenants must keep all utilities in their name. If they do not, it's grounds for eviction since it's breaking the terms of the lease.

Curt Davis, when a buyer is using FHA financing, the choice is not up to the bank. It's an FHA rule that a second appraisal be done if the seller's purchase price was for less than 50% of the resale amount.

To mitigate these problems I remove the key from the lockbox as soon as the house goes pending. That way I never run the risk of an appraiser going in without my consent (especially if the buyer's agent gives out the code...I've had that happen before). I then personally meet the appraiser at the house and walk him around to make sure he's clear on the improvements made, etc. Before he leaves, I politely give him a folder containing a list of the improvements and comps. I also ask him if he has a copy of the PA (they always do, but it subtly reiterates what I'm getting at without talking numbers).

On the second appraisal I do the same thing. The only other thing I add to my dialog with the appraiser is that the 1st appraisal came back just fine and he shouldn't have any problems. I leave it just at that.

So far, this method has treated me well. I've never had an appraisal issue.

My filing system is pretty old school.

I have a separate file folder for each property and its related receipts. The hard copy of the receipt goes in the appropriate folder after I have logged it in QuickBooks.

QuickBooks is the bread and butter of the master ledger. After everything is logged I keep the paper receipt in the associated file for at least seven years for IRS purposes.

Scanning the receipts doesn't seem to add much value. Sure it reduces the paper receipts (if you throw away the paper receipt), but it sounds like most people are keeping the hard copies as a backup anyway.

The rehab deals on the MLS are drying up in this area. Some of the rehabbers I know are considering the spec home method. In my opinion, the timing still isn't right for this area to get back to building spec homes. It is still more profitable to buy, rehab and flip a house.

Maybe they're perceiving the market getting better since the good flip inventory is not on the MLS...

The market is already changing in Michigan. Going "shopping" on the MLS for the next best flip is all but behind us. The competition is more fierce and the deals aren't as lucrative.

As a result, I'm changing how I acquire properties. The REOs were good to me, but there are other avenues. Since I don't plan on changing markets, I have to change my acquisition strategies. (besides, in talking with several BP members at the Summit, I get the sense that these challenges are virtually nationwide).

The next best strategy, as I see it, is to direct market to private owners. These would be distressed owners who have building code violations, out of town landlords, driving neighborhoods to find vacant homes, owners who have filed for divorce (work with local divorce attorneys), Sheriff Sale properties which are in redemption with equity, and target homes which are tied up in probate.

These are just some of the ideas I've come up. As long as the rehabbers adapt to the new landscape, flipping will still be lucrative.

Patrick Snyder, you can have good experiences flipping in most any market. The key is pretty simple - buy a house cheap enough so that you can make some repairs and resell for a profit (or just resell as is for a profit...although some people consider that "wholesaling").

My best advice would be to learn as much as you can about your target market and costs to cure them. Know the values of homes inside and out, block by block. Once you have that knowledge, you'll be prepared to make offers and be comfortable paying what you offered.

There's not much else I can add to this thread since a lot of good points have been raised.

I once held an appraisal license. That was four or five years ago. The licensing requirements have stiffened up to be on par with other states and now also require the 2,500 hour on-the-job training. That is in addition to 90 class hours and passing the state exam. I feel short on finding any appraiser willing to let me shadow them for 2,500 hours (or even one hour for that matter). A lot of the appraisers are "old timers". They feel threatened by the new wave people wanting to be appraisers, so they're not allowing anyone to shadow them as a way of protecting their business. It's just as well. As Jeff Harding stated, it is not a lucrative business. It borderlines as being volunteer work given all the regulations, red tape, and scrutiny they're given.

Income approach to value, as Joel Owens stated would be a great tool to learn and master. In most states, however, it's a tiered licensing situation...you have to be licensed as a residential appraiser before being able to appraiser commercial, income generating units.

I'm an active rehabber in southeast Michigan (and about 50 miles east of you).

Since you are somewhat local, you know the region. I tend to flip higher end SFH homes which are in Genesee County, but south of I-69. They sell very quickly and there's strong demand for turn key homes in that area. Oakland and Livingston counties are strong areas as well. I won't flip anything in the inner city limits (Flint, Pontiac, etc.).

If you'd like to know more about the relatively small pocket that I'm actively flipping, feel free to contact me privately. I'd gladly meet you for lunch and we can explore around from there!