All Forum Posts by: Mike Wallace

At first blush $30k per door in metro Detroit in a C area sounds high as an asking price. We bought in Dearborn Heights for $22k/door, with similar rents at purchase. With renovations, total investment will approach $30k/door, with all-new furnaces and central A/C, new windows, flooring, etc., but we're deferring cash flow and paying for upgrades as we go rather than financing the upgrades. Rents are now all at $550/mo. However, you need to offer based on the condition and rent numbers as they are now, not what they could be after raising rents.

Send me a PM and I can connect you with a local insurance agent who can quote apartments. He's active in the metro Detroit REIAs and is well-known by area investors.

Make sure this is absolutely what you want to do, b/c with 32 units in a C+ area (which burb, BTW?) you'd be taking on a heck of a big job, unless you already have a team and a system in place (office staff and maintenance person and established relationships with contractors).

The 32 unit is in the city of Wayne. I own/manage 9 units in this same area.

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Originally posted by @Patrick L.:

Even if you're going to self manage you need to factor in management costs. It's 32 units and not a single family home, this is a job. Do you work for free? I don't. What if you don't have time to manage it anymore or become unable/unwilling to do so? Always factor that cost in, at least that way you're compensated for your time.

I'd have to look at what multiples other properties in the area are selling for but that seems very over priced to me. I would be around $700k based on those rents but I don't have full information.

its difficult to find comps for larger multis, most arnt listed on the MLS around me.

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32 unit brick. Great occupancy. C+ area. I am very familiar with area, I own other smaller multis and SFH's in same neighborhood.

Current owner seems to keep building in great shape. Well taken care of.

Mechanicals seem to be less then 10 years old.

Heat and hot water is provided via electric baseboard heaters and electric water heaters. Electricity is metered individually to each unit.

monthly rent $500 ( somewhat low for the area, 525-550 is doable)

monthly water= $600

Taxes yearly= 18,000

Insurance= no idea?

snow/lawn =250 monthly

Random maintenance= $3,000 monthly

I would be managing myself. Whats a fair price? They are asking $950,000.

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Can you get credit union/portfolio loans on property you have a land contract on with a good amount of equity? Say for example I owe 60k but the property is worth 160k.

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All Forum Posts by: Mike Wallace

Mike Wallace has started 48 posts and replied 119 times.

Post: Any realtors doing direct mail to acquire listings?

Post: Tell us some details about your last wholesale deal

Post: Cris Chico postcard system tryout !

Post: Anyone make any money/have experience with D class multis?

Post: Best way for someone starting out to get listings?

Post: Those of you who have bought 20+ unit multis, what were the terms?

Post: How much would you pay for this 32 unit? got all the #'s.

Post: How much would you pay for this 32 unit? got all the #'s.

Post: How much would you pay for this 32 unit? got all the #'s.

Post: What type of terms are you guys getting from credit unions?