All Forum Posts by: John Knappmann

[quote=Paul Jamgotch

The question I have is, is it realistic to take $100K cash (life savings except smallish 401k) and turn it into at least $3500/month with a multi-unit?

I hate to be negative, Paul, but I would not rely on that for a plan to feed my family. It is unrealistic to expect that kind of return on your $100k, especially as a net. If it was me, I would buy some SFRs or a multi and also try to pick up some kind of job to make up the difference. Good luck.

Welcome Jimmy. It sounds like you can not only learn a lot here, but actively contribute to other people's education. Cool!

Brianna, I happen to be an attorney who has worked for local government but is also now an investor and I would agree with the advice to seek out the attorneys who your local landlords recommend. You don't need a specialist to draft up a lease (in fact, you could adapt a lease someone else uses), but there will come issues down the road where you will need someone with some expertise. Same with a CPA, by the way.

You want an attorney who will be responsive and knows the area. They may not always be able to take your call, but they should be able to get back to you by the next day or so. Above all, find one you are comfortable with, as there is nothing worse than paying money to someone and wondering if it is helping solve your issue.

I listen on the way to and from work, too, and other times too. I like listening more than once to them, as I seem to pick up new things each time through. I agree that you should not feel bound to keep within a specific time.

Welcome, Mehran!

Well said, Tom. Here is a columnist from the Detroit News today on the subject of investment in Detroit and its financial woes.

http://www.detroitnews.com/article/20130621/BIZ/306210043

Welcome, Allan, you will find a lot of good information here. I know I have. I would suggest doing your research before jumping in, especially before you try flipping. I don't know your local market that well, but I'm sure there are people on these boards who do. Good luck!

The City of Detroit currently has an Emergency Manager imposed by the State of Michigan. It is projected he will leave in about 18 months after completing his assigned mission. His job is to clean up their financial situation. One huge problem is that there is currently so much debt that it takes up huge chunks of the city budget just to service. And police and fire are underfunded. Resolution can happen by successfully negotiating with the unions, retirees, and debt holders (by far the most important group to resolve things with) or it can end up in bankruptcy court. He'll try negotiating, but he definitely goes the bankruptcy court route if it fails.

I may be optimistic, but I don't see how the debts are not settled for comparably little and that things look a lot better with police and fire after that. Bondholders, employees, and retirees are going to get hit hard, but the debt should be cleaned up going forward and essential services should get much better.

I have two properties so far, plan on accumulating more. My plan right now is to hold them and pass them on to my children with a stepped up basis on my death. That's assuming the tax laws stay the same, which of course can always change.

Welcome Tereal. I see you bought a rental in Midtown. You probably already know that Midtown is a growing area in the city. Stick with your timeline. Thank you for your service and best of luck. I live Downriver, so my focus so far is there.