All Forum Posts by: Christian Hutchinson

Did you have a business you could provide an EIN?

Also, LOTS of border states have computer systems that take Canadian Social Insurance Numbers because they know such a large population does business in the USA.

I think SSN and SIN are both the same number length if I'm not mistaken(My Wife is Canadian).

If you are talking Single Family homes in SE Michigan, not Detroit with a value of 50K to 300K with replacement cost being $110/sq ft,  built post-WWII,600-1100/yr. thats a sliding scale based size, value.

Of course that number reduces with volume.

 HAHA I grew up at Connor and McNichols(neigborhood where De La Salle use to be)

I use to hangout at that basketball court on Dexter and Davidson it use to be really nice 2003-2007ish.  That neighborhood Southwest Corner of Dexter and Davidson is actually in very good shape.  You'll be pleased with your neighbors and your tenants I imagine.

Gratiot and Gunston...thats a little more interesting. You have Ravendale who is an absolute warzone, then going up Connor heading towards Outer Driver is nicer.

Both would be outside my comfort zone doing Detroit investing.

My standard thing I'll say: spend some money on exterior lighting(dusk to dawn, motion sensor, high powered lighting). If the home has windows less than 4 feet or going into the basement just glass block them in, or board it and put a piece of metal behind it to brace it. Fence in the backyards(expensive $$). Maybe put in one or two exterior cameras.  It will help with your quality of tenant, they can remotely login via smartphone, but it also allow you to keep a pulse of whats happening on the property. Exterior lighting might cost $600, camera system another $1200.  Doesn't help your property value but your tenant quality will improve.

I put stainless steel appliances, new window AC units in my property in the North End. People thought I was crazy, but It drew enough leads from quality renters, I finally hooked some good ones after 3 weeks or so. I used CL, and just Zillow Rental Manager(it posts to 30+ sites with just one form).

I ventured out on the recent tax auction I bought a place at East Grand and Charlevoix for $600. Its a duplex also. Place needs work, I'll probably start once the weather breaks in Feb.

Good Luck!

 There are dozens of reasons NOT to do such a purchase in college. Unless you are living in the area you grew up in and plan on being a commuter anyway and there are a few schools life is just not stable at 18-21 years old to make that decision. Unless RE is a career choice, there are dozens of other things you can do with your youth.

Join the Military, Peace Corps, Open a Business, take a semester abroad, take a risk on a job at a startup 800 Miles from home. All things you can do before you decide to become a property owner. Once you buy a property you are tied to that area and your money if tied up for 2-4 years.

People ask me how do I transition into do this so easily. Because of life experience. I spent lots of time in court(unfortunately) never for anything serious, but I know what type of documents to ask for when dealing with certain people. Someone says they work for the FEDS, State/Local but don't start work for 5 weeks but need Housing ask for an "Appointment Letter", Private Industry calls it an offer letter/sheet/package but Govts call it an Appointment. Thats a front-line screening question. I would not have known that if I hadn't did time in the Military(Also someone saying their Military better say they have an LES and BAH, if someone says I'm in the ARMY and I have pay stubs, immediate Red Flag).

Someone says they get child support, or they get alimony because they are recently divorced thats why they haven't worked in 8 years. Where is your Divorce Decree, all payments and settlements are spelled out in it.

A foreign student claims they are in country to take their MCATs(Medical School Entrance Exam), so they want a short-term rental paying cash. Where are you taking the exam? In my Metro Area, all those sort of test are taken at maybe three locations. I know where they take the test because I ran the Med School Basketball League for 2 years at my college, so I know 100s of Medical Students/Residents, I know the processes.

The local Corporate Community brings in "Fellows" in various industries. These people are relocating from across the USA. Someone says they are in the running for a fellowship, my employer is a Charter Member, our Companies Rep on the Board office is next to my bosses. I can ask what are the timelines they are working with right now in general for bringing Fellows versus what some person on the street saying blowing smoke.

Knowing what to ask based on what people say, is a huge part of the screening process. I care about finances and credit too of course. But things like income, why your looking, why you leaving your previous home should be easy to verify/explain.

Depending on your personally financial situation drives your initial purchase.

If you very liquid and has ton of credit, the Woodward Corridor is a great play because of the stability, appreciation, rents, etc.

If have one and not the other, OP, Warren, Redford, Westland, Eastpointe might be better choices.

I always say this business runs on cash, because of lending standards income needs 2 years of aging to count towards any underwriting.  So your first deals need to put lots of cash in your pocket. That way once your income ages you can do the nicer rentals in B-Ham, Troy, Rochester, GP, Novi because you have places in Warren and Redford putting lots of cash in your pocket monthly.  If had 3 properties in 2 years putting 1500/mo in profit in your pocket you can do major damage once your income ages and you go get an investor mortgage.

Where in Detroit are these properties?

Zip Code and Cross Streets

Depending on the area there are certain BP regulars you could lean on.

These are great options for singles or younger couples that can "break the mold".  Most likely, a duplex to 4plex isnt't in the sexiest part of town, because housing wants built that way post 1950. But the money saved is crazy.  After 3-5 years you can move on with lots of dough and equity.

I'd give them the whole month back and tell them they are on their final warning before I start evicting.

Late EVERY month. Don't have time for that.

Someone said Huntington Bank might be opening up to do some Detroit Deals...

My experience is even if you can get a purchase price with an appropriate appraisal banks will raise your down payment so high they kill the deal. I had a lender this past Spring raise the DP 4 times, started at 10% and ultimately ended at 45% down.  Then 5 hours before closing they pulled out because they realized they wouldn't make any money(my payment went from $815/mo down to $425)

why do you have an investment property your not renting out?

Nothing you have is a big issue.  Just remove the homestead exemption, you'll be fine.