All Forum Posts by: Jean Bolger

Well, I wouldn't go near this. I'm not saying that there aren't any good investments in Wayne County, but for the risks involved you'd want a lot more potential return. I wouldn't go there without a reliable and experienced local partner who knows the area inside and out. Especially worrying on this deal: 1) 4 out of 32 units occupied? that means, as Jon said, that nobody wants to live there. Even if you do a lot of work it could be years (or never) before that turns around. Detroit has many whole blocks of housing that have been razed due to the decreasing population. Too many buildings, not enough people. This is something that can be hard for people from very populated areas too get their head around, but it is real! 2) Seller bought the place and suddenly found himself overcommitted? More likely he bought the place for almost nothing hoping he could resell to someone from outside the area who didn't do enough research.
Not trying to be a gloomy-gus here. There are plenty of good deals in Michigan and the midwest. But I'd guess this isn't one of them.

I didn't know you could paint vinyl- doesn't that kind of defeat the point (low maintenance)? I think the dark shutters look good- Nice bit of photoshop, Derrick!

Asking about smoking is certainly not discriminatory (at least not here, and no where I know of) Smokers are not a "protected class" , thank goodness, you can choose to rent to them or not. But I don't think you're going to get anyone to divulge in an application that they are a slob, or hold wild parties. If you are asking them to take care of a lawn it's reasonable to make sure they have a mower. When I had an up/down duplex that I lived in I had some questions on the application about interests and hobbies, and I was up front about the fact that we would be hearing each other through the floor and I wanted someone compatible. I wouldn't do that for any of my other rentals though, it would feel invasive to me. I just try to size people up when I meet them and get what info I can from their former landlords.
YOu might try sending a letter outlining what the issues are and explain your expectations. If it's a big problem, you could tell them that you won't renew the lease unless it's resolved... of course, then you might have to stick to that...depends how big a deal these issues are to you, I guess!

How do any of you folks deal with a multi-unit multi-dog situation? I allowed dogs with the stipulation that the yard was treated the same as the local public parks... when they 'go', you bag it and throw it away then and there (or you're in violation of local law). I finally went to "no dog" policy because, well, the poo in the yard was always the OTHER dogs' poo, y'know... maddening. Unfortunate too because this property is a few blocks from a great municipal off-leash dogpark, so it could be a real selling point for the units.
Maybe I should try charging a heavy "pet rent" and just use some of that money for a pooper scooper service!

I strongly suggest to my tenants that they buy insurance, and explain (in the lease) that they're not covered by my insurance. What many of them don't realize, until they're told, is that if they buy from the same company that issues their car insurance it can end up costing them next to nothing because it can activate a "multi-policy" discount on the car insurance. In some cases it even saves them money!

Up in Eagle CO you'd be a prime candidate for evaporative cooling too. I just installed a new unit in my home (down the mountain in sweaty Aurora) last summer and it does everything I need it to do cooling-wise. Less expensive to install & run, more environmentally friendly as well.

I'm so sorry you're having to go through this! I just got rid of a tenant who had ABVD (advanced blaming/victimization disorder.... if it's not in the DSM it should be). Even when you know how out of line their accusations are it still feels terrible to be on the receiving end.
When you have a disagreement with a sane person it can be worked out. When they're nuts, you can't hope for that kind of resolution; all you can do is protect yourself the best you can and try to deflect their energy to somewhere harmless.

I would keep calling lenders- perhaps focus on those that lend frequently to investors, even though you are looking for a primary residence loan. Different lenders can just have different mindsets about how they process the same information.
For example, I was talking to one lender about a loan for a 1031 exchange. He claimed that he would have to subtract the income from the property I was relinquishing from my last two years tax returns, since I wouldn't own it any more after the exchange- even though the new property I was exchanging into had a MUCH higher cash flow, debt service ratio, everything. The next guy I spoke with thought that was just nutty (as did I).
Just goes to show that the same information can paint a very different picture in two different minds...

I think plenty of qualified tenants would be really put off by that and go elsewhere. (I would, if I were looking for a rental- but maybe you wouldn't want me as a tenant anyway, haha!)

Were the current owners renting it out as a triplex? I own a triplex that is grandfathered in under current zoning- meaning that it's OK to continue operating as it's been, but if I were to scrape the lot and rebuild I could not put three units on it. Don't know how similar your situation and /or zoning codes are though.