All Forum Posts by: Keith Jourdan

http://www.detroitnews.com/story/news/special-repo...

1 in 5 Detroit Rentals face eviction EVERY YEAR

Great article regarding rentals in the city of Detroit by the Detroit News. 

I get messages every week on here for years now from out of state investors interested in buying property in Detroit, drawn by the unbelievable cash flow potential. Yes you can buy a house here for $30k that rents for $700. But the reality will play out much differently. Tenants will not pay/theft from houses/highest home owners insurance/tax rates in the country/vandalism....the list goes on.

just a few miles outside of the city .......We have GREAT cash flow numbers in the suburbs compared to most large markets, great suburbs with low crime and great tenants. . The average deal I do in the suburbs is $80-115k and rents for $1000-1300. These are safe areas you can walk at night, no burned down houses.

City of Detroit investing is not for the faint of heart, I have seen too many out of staters get burned. Stick the suburbs where there is more than enough money to be made!

I own other condos in this complex and they do very well for me . There are just over 300 units in the complex . I put together a mail list of all the owners ( mostly landlords) and have been mailing them a few times a year looking to buy more . A guy called me with 5 units and we got a deal done .  

 I will start the refi a few months before balloon is due . However this is a little risky , who knows what rates will be in 3 years , or what values will be then. However I think I will be safe . I can also always negotiate with seller and extend the term . 

George is right. If priced right and clean they rent very quickly.

This is in Westland . About 20 min west of Detroit. I dont invest in Detroit, too many headaches and tough to make money. Don't let the purchase prices fool you.

I got a good deal on these condos. I could list each one for $35k and sell very quickly. 

They are all about 800 sqft. 2 bed 1 bath with a private basement.

Here is one I have updated. Painted, and tore out the carpets to refinish the original hardwood floors underneath. All my rentals that have original hardwood under the carpet I tear out carpet and refinish the wood floors. Tenants always just destroy the carpet.

 basement

Bought a package of 5 condos off an off market seller (called one of my letters). 

Condos are in Westland Mi. Which is in the Livonia/Garden City/Redford/Canton area. About 20 min east of downtown Detroit.

I would rate the neighborhood as a C

Details of the deal. Did a land contract (seller financing)

Purchase price $142,500

Down payment $35,000

Balance $107,500

Terms: 15 year fixed at 5% balloon payment due in 3 years

Monthly payment $850

Each unit is rented currently at $650 (Market rent is $700 in this complex)

Association fee is $30 per unit per month.

Yes still buying in Redford . Tougher and tougher to get deals , hoping winter slows the market done a little bit and every house doesn't have 10 offers lol

However when it comes to Redford I am only interested in west of telegraph , and don't buy in the grand river telegraph area. Although willing to look at anything for the right price . 

Ecorse and river rouge are rough industrial areas . Ecorse is a little better then river rouge . These areas are not for the faint of heart. Highly polluted areas, waste sanitation plant is right there. 

Unless you live and know the neighborhood really well I wouldn't invest there. 

The only guys I have ever seen make class D rentals work is people who grew up in the neighborhood and know everyone and everything going on.