All Forum Posts by: Hal Alam

Thanks to everyone for your replies.

I found out late Wednesday from the PM company that the seller had pulled out and decided to sell it to someone else, due to a delay in the PM company receiving my EDM. Luckily I was able to cancel the bank transfer in time.

Going by the various responses from the different posters, it appears that I might have dodged a bullet there !

Tim, that's interesting to know that similar or perhaps very near value can be had in other markets. If you have any pointers, that would be much appreciated.

Jon, That was certainly a very clear list of questions you asked, and I'm a little embarrassed to say that I dont have definitive answers to most of them, which I guess would lead you to say... Stay away from that purchase until you do !

I also appreciate what you had to say about buying at a discount to current market rates to protect myself from a further downturn or to allow myself to escape. These are good points, many of which unfortunately I hadn't thought of. I think that perhaps a mini checklist made up of what you have said might be in order, so that I can tick off the points you've raised for any future properties I look at.

I did do a lot of research, but it's clear now that it still wasn't enough.

Malhar, both what you and Jon said about the low cost of getting ready for rent should have rung lots of alarm bells.

In future, a personal inspection followed by quotes by a few quotes for comparison will be the way to go.

Kevin, I tried to do some research, but clearly the situation in Detroit is more complicated, as you as a local have stated.

Would appreciate your ideas on what the situation is on the ground.

Mark, wow ........ That seems to be a very tough situation to be in. So if I do make the wrong choice, all I've got to look forward to, is deadbeat tenants and lots of grief !!!

Thanks to everyone so far for their solid advice and help, such as the Bagley info.

Thanks Hal

Thanks for everyones input. I can't help but feel a bit chilly, after the bucket of cold water that's been thrown onto my plans.

I do understand that there are people on BP with significant experience in RE investing, so I am taking the views & comments seriously.

I think that it might be useful to give more
details about the deal, so that you guys have a clearer picture.

The property is in the Bagley area of Detroit.

It is a multi family home with 2 units, which I'm buying for $15,000.

The house is in "apparent" good condition and I have been told that it needs about $3,000 of work to make it ready to rent out.

The 2 units will approximately rent out for $1150 per month, and the taxes are just under $3000 per year.

I thought it looked good primarily because it was in a good area, and was recommended to me by the property management company, as an area where renting would not pose a problem.

Look forward to everyones comments.

Curt, thanks for your advice, terrifying as it is !

Could you please elaborate a little on what you mean by smokescreen and only the well established have any means of making money in Detroit ?

Thanks Hal

Tom & Bryan, thats really good to hear that some people are are doing OK in that Market. Perhaps I should find out how, before I shoot myself in the foot !

As for where I come from, lol, let's just say I come from a Galaxy far far away..........

Thanks guys for the welcome, its very much appreciated !

Tim, Lee, CJ, you guys are probably correct, that it's a tough one starting off on a remote deal.

It just seemed that Detroit offered good value and the possibility of decent returns.

Kevin & William, thanks for the offer of local advice / contacts, I will probably take you up on it.

Hello to all BP members.

I've just recently found BP and have to say that after exploring the website, it's a mine of information !

What's also impressed me tremendously is the feeling that the forum is populated by real people, as most people have used their own photo's as the avatars. Gives a real feeling of community and like minded people.

I'm in the process of buying a house in Detroit, even though I'm from out of state (very out of state).

My aim is to build a small portfolio of good quality properties peopled with long term tenants.

But it all depends on what happens on this first property !

Unfortunately I don't have any real experience in investment property, so it promises to be a real learning experience, but hopefully not a painful one !

Anyway hello to one and all !

Regards
Hal