All Forum Posts by: John Knappmann

And, unless you are going to be employing a significant number of other people, there will likely not be state incentives for real estate investing.

I would also suggest investing closer to home, especially since you are new to this. You can get excellent returns in southwest Michigan, too. After you feel confident in what you are doing, then you can add an extra layer of complexity and invest out of state.

Welcome!

Tereal, I have a good insurance agent if you need a referral. He wrote a rental in Detroit for me, and another in Lincoln Park. He is in the metro Detroit area.

I would not pick a really disadvantaged area of town to start, but a blue-collar, working class neighborhood is not much more money to start and can be very profitable. Depends on your area, of course.

We've all been there that first night, Nicholas, when we're still up reading when we should have gone to sleep. Don't be afraid to ask questions.

Welcome Derek. You implied that your first stab at RE investing did not turn out so well, but still here you are back for more. That in itself is an accomplishment. Just think how enthusiastic you will be after a deal starts making money!

One unique thing about Detroit compared to other large municipalities is that Michigan's municipal funding system is completely whacked. Because of a combination of factors, including what is called Proposal A and Headlee, a city without undeveloped land is guaranteed to have their revenues fall behind inflation more and more each year. Unless changes are made, more cities in Michigan are doomed to fiscal collapse. Detroit is one of the few who have an income tax in Michigan, but most of the residents don't work, so it does not help. Detroit is also part of a larger problem that Jon alluded to, elected officials across the country see demands for services but objections for the taxes to pay for them. The result is a lot of cans being kicked down the road instead of hard choices.

Part of the Detroit criminal element thrives because they can commit crime faster than the police react. Reducing response times for police should address that issue, which the new chief and the EM have made a priority.

I continue to believe that Detroit will emerge from this process as a better, self-sustaining place.

Welcome. You're not crazy at all.