All Forum Posts by: Joe Mazur

@Matt Cramer, to answer your question, I live in Clinton Twp, on the East Side of that map in Macomb county and attend the Macomb REIA. So I'm more familiar with that area. But I know people are having success flipping in Macomb Twp, Shelby Twp, Troy, Clinton Twp, Sterling Hts, North Warren, St Clair Shores where prices are medium to high and having success renting in Sterling Hts, Warren, Oak Park, Roseville, St Clair Shores, where prices are medium to low but still in good areas (just to name a few). I'm sure many many people are having success in other areas but these are the areas I'm familiar with.

And not to throw @Joshua Dorkin under the bus but I think it's mostly Josh over Brandon who bags on Detroit haha. Can't blame him based on how much Detroit and the politicians were in the news a couple years ago. Seems to me that the city itself is definitely on the upswing tho. 

I'm only through podcast 50 and it sounded like Josh starting to love on the city during one of those podcasts.  Can't wait to see how that love blooms as the podcasts progress. Haha

Hi @Matt Cramer

When they say Detroit, they are mainly referring to the city itself. Although it realistically is not as cut and dry as saying the whole city is not investor friendly. You are right, there are definitely some investors investing in the city of Detroit and it is definitely area dependant within the city. And there are even more investing in the suburbs. I still consider myself a beginner investor so I personally prefer to invest in the suburbs. 

The Clinton Township area north of 16 mile is a nice area. The retail values of properties in that area range from 100-300k depending on what neighborhood you're in which I think are pretty good ARVs for flipping because you want a price that a lot of home buyers will want to buy in. But I'm sure a lot of the more experienced rehabbers on the site can give a better opinion on the best retail values which may be in the 100-200k range. 

From all that I've read on the site and listened to on the podcast is that you want to have multiple exit strategies. So when you're looking for houses to rehab, think about what would you do if it won't sell for some reason. So when you buy a property that has an ARV of say 150k, and for some reason it won't sell, could your fall back plan be to rent it out and still make a return. So if you had to get financing on it at 30yr 4.5% loan for example, could it still cash flow. With the higher value properties this may be more difficult. Just some food for thought.

Hi @Joel Strehl

Welcome to the community. I think the advice @Josh Mitchell gave above is a great idea. I wish I would have bought a house in college and rented out the other rooms. Would have been a great learning experience. Not to mention you can get good rates with conventional or FHA loans with a lot less down than bank financing for investment properties.

One book I just finished reading was the Book on Investing in Real Estate with No (and low) Money Down by @Brandon Turner, it was awesome with a lot of good info that you can probably use for your current situation. 

For searching for the property, my advice would be to find a Realtor in the area and start looking on Craigslist at FSBOs. You can probably find a good realtor that works with investors at a local real estate investing association meeting.  

And the main thing for rentals is cash flow. So based on sale prices of properties in the area, calculate how much your monthly payment would be with your loan, figure out what kind of rents you could charge per room based on other rentals in the area, and see what kind of return you could get. (And I would factor in some expenses in your calculation like maintenance, etc). Even if it's just living for free for now, that'll help by keeping the money you'd be spending on rent in your pocket.  

There is a lot more information that could answer your question 2 than can fit in a post. I would definitely start by searching in the forums for what your looking for and I'm sure it's been asked and answered before. And listen to the podcasts. They're great for getting information from people who are both novice and seasoned investors. 

Hope that helps.  

Joe

 @Jeff Rabinowitz, thanks for the correction. My mistake. Just looked over my attorney bill and it was definitely cheaper. But still more than 50. I guess it pays to ask the community first :)

Hi @Charlene Garrison

I set mine up through an attorney. I paid him ~500 total for his time to set it up and the LLC fees. You might be able to get it done for a better price. I would call around to some attorneys and ask what total price you would have to pay for this.

Hope that helps. 

Joe

Hi @Timothy Otten 

Welcome to the community. I'm in the SE Michigan market and have wholesaled a few properties. If you have any questions, definitely post them. The community is great at answering questions very quickly. Good to have you aboard. 

Joe

Hi @Marlena Cooper  sounds like you're taking action, which is further than many beginners get. The top level steps that David W gave is a great place to start. 

One big step is his step 5. From a couple bad properties that I have had and marketed, I've found that figuring out ARV and repairs is very important. You can partner up with someone who is doing deals to pick their brain about rehab costs. Also, I haven't read the book yet but I hear J Scotts book on estimating rehab costs is really good.

What I have done is I found a contractor that will walkthrough any house I'm not sure of rehab costs. He'll charge me a fee for an estimate. 

If you're ever an hour east of AA, let me know. I've done 4 wholesales so I'm no expert by any means, but I'd be glad to meet for some coffee and answer any questions and provide any help I can.

Joe

Hi @Mark Nolan 

You're definitely right. I've already saved myself from a couple bad deals over the past few months from just reading on the site.