All Forum Posts by: Cathy Malmrose

@Tyler Tacy I have had the exact same situation in multiple buildings. Tenants at 500 something when current rents are anywhere from 750 to 925. Fortunately I was able to prioritise renovations to allow the older tenants to move more slowly. One of them passed away a few weeks ago and was grateful to not have to move. Another is moving of his own free will. There is another that I will have to be more forceful in encouraging to move along but they've gotten nasty so it's not difficult. Just know I feel your pain and it's difficult. I was patient and that was the best route in my situation. If at all possible prioritise. While you are renovating the other units the noise and the improvement in the building will make it obvious to them that they need to move on. Talk with them frankly about the numbers. Offering to help them move can get tricky. Only offer to help with the large items if you have to. Offering to help them move can get tricky. Only offer to help with the large items if you have to. If they belong to a local church that's where they get their best help. Odds are you will help them move and next year though be sending you a Christmas card thanking you.

@Josh Deeden I have had success setting up a "pod" of rentals in Michigan. The roi is insane and all of my renters continued to pay through the pandemic. If I wanted to continue growing I would probably do Austin next. I used to live in Austin and there's going to be some incredible renovation work there over the next few years. I would probably start buying later this summer when people have hit the pain point and I would bring in my renovation crew from Michigan who are familiar with disaster remediation. I would do the same thing there that I did in Michigan "cash, no negotiations, no inspections, you can have the buyer commission, how about $x?" I got a yes nearly every time. I don't recommend skipping inspections unless you really, really good at it. I always did my due diligence before meeting with the agent. I also brought a contractor with me who did the inspections while I was doing the walk-through with the agent. A head nod from him and I made the offer. Ah, good memories!

Maybe I just got lucky but these numbers are nuts. I'm in MI and my $20k properties (that's purchase price) rent for $700/mo ave. I can buy 25 homes for your 1 home in your area which makes these rents $17,500/mo compared to the $3,600/mo you quoted. Wild. My renters all continued paying rent thru the pandemic (all but one but they moved peacefully). What am I missing? Why aren't there more investors in MI?  

How do I connect with flippers near me? (Michigan, Lapeer County) I have 3 flips that was was going to do but I'm burnt out. I have tried driving by the homes that local flippers are working on but I never seem to catch them. I've asked a few realtors but they just want to sell the properties for me. Where else could I look? 

Prop 1 = a SFR, ~3,000 sq ft, roof is good, foundation is solid, I got all utilities working during the summer then winterized it. Good location, family neighborhood. Needs a full gut. I bought for 35. Market allows for 220-235 once finished.

Prop 2 = a old stone one room schoolhouse that is actually 2 stories, 3 bdrm, approx 1,500 sq ft, full new roof, structure solidified, mostly cleaned up inside but also a full gut from floor, walls, ceiling, some parts only framed out, a few elegant details in place like the original slate chalkboard & a circular staircase (surely not original ofc, but nice). On 1 acre in the countryside. Includes a 2nd house, another stone cottage, small studio. I bought for 55. Market allows 215-255 depending on finishing details. Full gut.

Prop 3 = SFR in good neighborhood, quick flip, 2-3 weeks with a good flipper taking lead. Needs new flooring, siding, garage doors, a kitchen cupboard door replaced, and other minor fixes. Bought for 93. Realtor wanted to list for 139, most direct comp just sold for 164 nearby.

The numbers are good enough to make any flipper salivate -- I bought them in 2018-19 but I also got a bunch of other properties that have kept me busy and I need time to have a life beyond this. There has to be a good flipper out there who could make them beautiful again. Where do I find them?

Hi, it depends on where you are located. Check with your city/town/village/township/whoever regulates housing in that property's address. I have something similar -- a triplex, fully decked out for 3 families, but years ago the owner wanted to save money and got it zone as SFR. In my little town, the city NEVER goes back on an SFR. I am actually on the Board of Property Assessors now, connected to all the people who would get it switched back to multi-family and all of them say that, "I've never seen one switched from SFR back to multi-family, not in 40 years..." Plenty of people have tried. None have succeed. Whatever you do, make SURE you get it zoned properly before starting the reno. You'll either have to go under the radar (not recommended! people usually get caught) or you'll waste money reverting it to an SFR. Note there is a huge market for SFRs with a mother-in-law suite. I have one that rents for more as an SFR + mil suite than it would as a duplex.