All Forum Posts by: Adam Demchik

Works in Michigan too. Just google your city our county with "real estate broker". It took me about 5 cold calls until I found one to work with me.

Will BarnardThe old retail building was converted to apartments about 10 years ago (9 units). There was a fire that ruined 4 of the 9 units and the city will not allow repair and then occupancy as the building is
too close to road. So everything is zoned multifamily. they will only allow a new build.

Ben LeybovichThanks. Agree for 50k a unit I can buy in a very nice area with higher rents.

Will. Thanks. I am going to check with some local builders. The last time I looked at building a residential house it was about 70/sqft for a pretty decent house. With regards to the expenses, I think they are high due to the extra land causing the taxes to be inflated (as well as an old retail building on site that would need a teardown). I like the idea of boat storage as the property is 3 blocks from one of the great lakes.

Thanks for the tip on building to cash flow. Currently rents are 400-600 in the area.

Hi all. Just wondered if you could provide feedback on a deal I'm working on. The details are as follows:

No of Units: 4
Purchase Price: 120,000
Monthly Rent: $1800
Monthly Expenses: $1100
(I know...not a great deal)

The bigger question I have is that as part of the purchase I also get about an acre of land zoned for multifamily. I could fit another 16 units in 4 unit buildings on the property (according to the current owner). Does anyone have an estimate of what it would take to build 8-1 bedroom and 8-2 bedroom units? The building details are as follows:

2 story
units are 800-1000 sqft
mostly sided
on slab
single entrance to each building

Thanks all in advance!

Thanks Robert. I usually say ugly equals money....but I like mold equals gold better.

Does anyone have experinece with mold in a rehab. I know there are companies that can "clean" the mold for a relatively cheap cost but I am not sure how well this works. Are there any long term liabilities with this? Thanks

Thanks Simon. With regards to the redmeption period, is there a way to find out what it is prior to the auction?

Matthew,

I posted this same question a few days ago. In general the answer was probably not, however one of the banks I asked told me I could do this but only have 4 open HELOCs at one time although the max. LTV they would go was 60%. Good luck.

Hi Teresa...welcome to BP. I am a newbie from Michigan as well and looking for a rehab.

Thanks all. I did some digging at my local county office and found that I can do the title search online and property tax check online (both for a fee of about $150 per month). I am assuming going into each property that it will have tenants living there and plan on offering a cash for keys proposal.