All Forum Posts by: Hannah Williams

Has the tenant agreed to move out after the 45 day notice? If so, I don't think it would be worth the aggravation to hire an attorney to evict this tenant. It typically takes longer than 45 days to evict someone anyway. By hiring an attorney, you would only be making your situation worse by prolonging the process and having to pay at attorney. I would just let them ride out their notice, and let them leave.

I guess I don't understand why you would be deflated about this situation if the apartment can't be used for a future tenant anyway. You won't be making any money from this unit after the tenant moves out if it's not up to code, so no harm, no foul. 

For future purchases, make sure you collect all security deposits from the previous owner when you purchase a home/multi-family. That should be part of the negotiation in my experience. Good luck to you!

I have a property that I put around $15,000 into. I had to evict some tenants, and they stole the bathroom sink, outside awning, destroyed some of the walls and carpets and stole the furnace and hot water heater. It needs a significant amount of work, about $3,000 dollars worth. I have two questions about this.

1) Is this worth making a claim over? 

2) How much does insurance go up when you make a claim?

3) Will the insurance for my other properties go up as well, since I'm insured by the same company with all my properties?

It's close to Marquette. University areas always gentrify, especially with a majority of people on this planet moving to cities in the coming years. They have to have somewhere to live, and it's typically near educated people, pushing the "ghetto" people to other neighborhoods. This area isn't in the WORST area of the city. It's on the outskirts of areas that are changing. Eventually, it will change too. Like I said, I wouldn't take a mortgage out to purchase something like this, but could be good in the long term if you can find good tenants now.

Hi Tiffany, 

I don't own any property in Milwaukee, but I lived there for about 5 years. 

The area you mentioned is interesting. It's not far from downtown and Brady Street, which are both highly desirable areas, but it's to the West of the river. I would say this area is probably a transitional neighborhood. I'm not sure about Asians living there, as this was a very African American area when I lived there 4 years ago, but I guess things could have changed. One thing you must know, Milwaukee is a very segregated city, as a matter of fact it always gets on the top of the list of most segregated cities in the United States. The boarder into the "ghetto" is the river. East of the river is great! West of the river is not so great, but hipsters are really taking over in the areas immediately to the West of the river. That's why I would call this area "transitional." I love transitional areas (and hipsters), and that's really all I invest in, but I do all cash deals. I'm not sure how I feel about taking out a mortgage on a "transitional" area home. 

My recommendations:

1) Take a trip to Milwaukee to see it for yourself

2) Be prepared to lose some income when you hire a management company, in addition to the percentage they take. They will never do things the way you would if you were managing the property yourself. The old saying "if you want something done right, do it yourself" seems to fit every deal I've ever done out of state. 

3) Get a ledger from the previous owner to see if he's really been able to collect rent from the current tenants without problems. These transitional neighborhoods are hit or miss. You could get a really great tenant, or you could get someone who's spotty and pays partial payments or doesn't pay at all. If the current owner has proof of rental payments, I wouldn't worry about collecting rent.

4) Ask about roof/furnace/foundation/plumbing and electrical repairs. You say it was rehabbed in 2013, but was it just cosmetic work? 

Good luck to you! Milwaukee is a fabulous market, and I have been wanting to join in on it for a while now. I love that city! 

I could write a book on this. 

1) SQUATTERS - Detroit is notorious for having squatters all over the city, even nice areas. They break into your home and strip everything including, electric, piping, water heater, furnace, and even the door knobs. It's happened to me before, but thankfully only once. I've heard horror stories about people having squatters break into their home when they're on vacation for a week, and they come home and there's someone living in their house. Since Michigan is a tenant's right state, you have to go through an eviction process to remove them. I've heard of homeowners living in the same house as a squatter because homeowners have no rights there. You can't call the police, because they won't do anything about it. The law needs to change to accommodate homeowners.  

2) BROKEN SEWER PIPE - I got a call from a tenant one day, and they said feces was all over their house. The main sewer pipe was broken, and they failed to realize it until a month had passed. HOW DO YOU MISS THAT?? We had to pay for a hotel room for them for a week while it was being fixed, and our property manager put them up in a $200/night hotel rather than the decent $90/night hotel right down the street. So these people were living in the lap of luxury for a week while I had to fix and clean up their feces, which cost me $2,500, plus the hotel stay. 

Those are the two biggest problems I've run into, but I'm sure there's more. Being a landlord isn't easy, there's always something going on. It's still very rewarding and can be a good income maker if you have a good property manager, contractors and tenants. It's hard finding quality people to manage, fix and rent your homes, but once you do, hang on to them. 

That's incredible! Doesn't it feel great to accomplish your goals? I make a list for myself and put it up on the bulletin board in my office, and I LOVE checking items off. Way to go! I hope your real estate investing dreams come true next year and in the coming years.

That's fantastic! Wow, you are a busy woman! Juggling kids, one being a newborn, working 60-80 hours per week and now buying your first rental property. You are a wonderwoman! I wish nothing but success and happiness for you and your family. Let us know how it goes. :) 

I have a 4 unit building with one water meter, so I will be responsible for paying for the water for the tenants. I know water fees are different depending on the municipality, but I wanted to get an idea from people who own multi-families. What is your typical charge for water on a 4 unit building? 

Thank you. You were all very helpful. Unfortunately, my property manager decided to sign a lease with these people without my go ahead, and they did become a problem. First, the payment from the state took 3 months to arrive. Then, the tenants made partial payments for a few months until they stopped paying all together. I'm very disappointed in my management company. 

I'm looking for a property manager in the city of Detroit, but I can't seem to find one with good reviews and reasonable prices. I was wondering if anyone can make any recommendations?