All Forum Posts by: Ken Bresser

I would ask a contractor. He can give you a realistic estimate on what it would take to fix it. 

And you need to think through that back house well. The city won’t likely give you permission to fix it and you certainly can’t use it as it is. My builder though it might have asbestos siding. That’s not a problem if you leave it alone or cover it with more siding but if you have to tear it down you’ll pay a premium for asbestos.  

Donald, did you look over that house with someone who understands buildings well? I have been in that house. It has foundation problems. The back building has very serious foundation problems, too. Also, the city has the lot zoned as a two unit. As far as I can tell there is are no documents for the back house. The city is getting more strict about permits. Probably that back bukding just just needs to be torn down. Having looked at it with a builder I concluded I wouldn’t pay more that 30k for it. Be sure you look at it with someone who understands foundations and hamtramck permits before you buy!

I have tenant who is in jail. He owes back rent. I found out he’s in jail from his father who called me. It seems he is cooperative, wants his belonging stored and to get out of his lease. The tenant asked his father to store his belongings, however, the father doesn’t have a key. It’s unclear where the tenant’s key is. The father asked me to let him in, so he could remove the belongings but I’m hesitant to do that without any authorization. I’ve read some of the discussion of evictions and abandonment but have a different question…. His father thinks that he could get access to the tenant and have him write a letter to us. What would you advise he write the letter to both hurry the process and cover us against any liability? It seems to me at least two things should be in it, first, his intention to leave the property and get out the lease. Second, authorization for us, or his father, or someone, to remove his belongings.

Is there any such form letter we could use as an example? Any advice would be appreciated. 

Josh, I don't have experience with eviction attorneys but I have talked a tenant down from an angry state. I am in Hamtramck several times a week. I'm getting started in purchasing and managing properties. If I can help you in any way let me know. 

Does anyone have purchasing and houses from the Detroit Land Bank Authority? Apparently you can apply to do a development project and get several homes at once. I'd be interested in people's experience doing this and possibly even partnering with someone who knows the ropes. 

I appreciate your sharing this information, Keith. It's very helpful. I'd be interested in knowing a bit more - have you worked in Detroit or only in the suburbs? How many rental units do you have and how often have you had to evict people? Do you have any experience in Hamtramck?

Does anyone know the laws in Michigan regarding renting to illegal immigrants? 

I'm looking to invest in small multi-unit homes in Hamtramck, MI. Typical homes in the area are built in the 1920's-30's and have 2-5 units each.
 

To calculate the numbers an accurate estimate of maintenance and CapEx is critical but has been hard to come by. One investor showed me his numbers and I was surprised to see that over the last 7 years he has spent 20% of gross rent on maintenance and CapEx. I had understood most investors figure 10% to be adequate.

Can anyone with properties in Hamtramck or Detroit tell me your experience in these costs? Thanks!