All Forum Posts by: Danielle Shulman

Julie,

I think that is a great idea! Check rental comps and find out what amenities if any, other rentals in the area have to offer. If you can cover taxes, utilities, maintenance and make a nice profit with potential to get a great ROI if you sell, go ahead! But, you also want to be VERY considerate of the area you are renting in.

I went to school in Chicago and rented in a condo complex that was mixed into a SFR area. My landlord rented to all students but then made the mistake of letting a family rent the first floor unit. EVERY resident got complained on by the family. I think that is their fault for moving into an ALL COLLEGE building but I couldn't even have my dance cleaning sessions without a complaint.

Even the sweetest looking tenants may want friends over so make sure the neighborhood is open to college kids living there.

You want to look at a number of sources.

If you have access to the MLS start there. Search Realty Trac which is a site that has legal listings such as foreclosures. You will also want to search Zillow, Google, and the county clerk records of the county you are looking in.

Google and the County Clerk's office will help you see if there are/were any violations as well as well as sheriff sales. 

Good luck! 

There are many pros and cons to buying short sale.  Time is obviously a major con. As well as whether or not the deal holds out However, a lot of short sales can really help you make a hefty profit.

Depending on your plans for the home, you can get a real gem for way below the value, throw a little work, if none at all into it, then sell it. It is important to know that the main reason these houses are so lowly priced is because 1. the banks do not want to hold on to them and 2. most banks only go after what is left on the former mortgage. 

Using your internet and local county clerks records (which are free to the public) you can find out the amount that is owed, any violations or code compliance on the house, and any other information pertinent to your purchase.  It is always easier and quicker to purchase a house that is already bank owned. When making an offer on a short sale, you must first ask the homeowner and agent if  a short sale was even approved by the bank. That right there is the most important piece of advice. Secondly, find out what that amount is and make an offer no less than 85% of the price, unless there is MAJOR damage. You will need an inspection report to go along with your offer.  Since the homeowner is not obligated to fix any problems with a home when it is a short sale, you can have room with the bank to negotiate those major repairs.

Do your homework and you should have good luck buying short sale! 

Rental furniture and coin operated laundry are great ideas.

However, I would do your research before deciding to upgrade appliances.  You need to review the comps for upgraded rentals in your area, look at the pictures of newly listed and recently rented homes/units and see what condition they are in. If they are comparable to yours then the answer should be no. Who is to say the tenant will be faithful and pay on time or even stay long-term? 

Also, look at the risk. Is the cost of expensive upgrades such as stainless steel appliances worth it in the long-run? Calculate the long term and decide how much extra you can add to the rent to cover your bases with that tenants and future tenants. 

If you are renting through section 8 or other government  programs, you may way to keep your rental to section 8 standards.

You could always add utilities and speak to your local utility service companies about cost-saving programs and budgeting.  In college we had a program where you pay one monthly bill regardless of usage.  This helped us out a lot because of the hot/cold crazy Chicago weather.

GOOD LUCK!

This morning I read an article posted on MSN.com regarding whether or not Detroit will receive a government bailout to help improve the diminished economy of the Motor City.  To see the article click here.

Fallen markets, especially in real-estate, prove to be advantageous for investors such as ourselves.  We have purchased over 500 houses in the Detroit market at an unbelievably low price. We are able to rehab these properties and quickly rent them out at an average cap rate of 9%. 

However, the numbers aren't the only reason why we and other investors choose to invest in these areas.  These areas are chosen for their potential. With or without a bailout, rehabbing over 500 homes, in any area will help boost morale and even the economy. Now, don't get me wrong, we are not thinking our investments will single-handily turn the whole city around but it will provide a boost in the real estate and rental market. 

For investors, a bailout is a great thing.  Detroit already has plans and projects in place thanks to private investors.  Updating their railway system, the new home of the Red Wings, and plans for new shopping centers have been in the works for quite some time. Relief from the government will open the door to numerous opportunities and investors hoping to pump life back into a once booming city.

We see this as a great opportunity for us and our investors. 

Way to go Bigger Pockets!

I look forward to using your services to help spread the good word about our Real Estate Investment Company as well as speak to fellow pocketers and learn from them.