All Forum Posts by: Drew Sygit

As an out-of-state investor, you want to take time to understand the difference between Metro Detroit and the City of Detroit. 

The suburbs of Metro Detroit are pretty much what most investors are familiar with. We always recommend the Ring Cities (cities touching City of Detroit) for landlord novices. Fairly easy to find rentals that will meet the 1% Rule, give a good ROI and average tenant problems.

Going into the actual City of Detroit, the Downtown, Midtown, Corktown, etc. redeveloped areas are going to be tough to meet the 1% Rule. 

Going outside of those areas is an adventure! The rest of the city is mostly Class C & D properties. You can find deals that far exceed the 1% Rule (like 2%), but with higher returns, comes higher risk. The majority of the tenant pool for these areas has under 580 FICO scores and are a challenge to manage. YES you can find solid Class C properties and screen for "solid" Class C tenants, but you have to know your way around the city.

Please do NOT ask about zip codes! We can show you losing properties in the "best" zip codes and great properties in the worst zip codes. You can search here on BP and find many experienced Detroit investors saying, DETROIT IS BLOCK BY BLOCK. 

If you're serious about investing here, DM us:)

In Michigan, we cut the grass on duplexes, but typically require the tenants to handle snow in their lease.

@Max T. You state they have medical collections, but it's any one really paying them for collections?

In our experience very few collection accounts are pursued. To do so requires a judgment which will also show in public records. Check their paystubs to make sure nothing is being garnished. Otherwise wouldn't worry about it too much.

@Matt Sullivan you might want to try DIY on one building to both find out if it's what you want to do and as a learning experience.

@Lisa Gould DM us and we can tell you all about investing locally;)

Check out this 3-part series:
https://www.biggerpockets.com/...

1) Your rental application should ask for 2 year residency and employment history

2) Ask for DL and social security card

3) Income: if paystubs have YTD amounts on them, why do you need more than latest one? Just average out the income per month!

4) Self Employed: latest federal 1040 and yes, last 3 months of bank statements personal & corporate

5) In addition to credit report, be sure to verify rental history with current & previous landlords. Be sure to check public records to identify actual owners of the rentals, so applicant can't have friend pose as landlord.

1) As you are out of the county, hire a replacement PMC. They can take over management to stop the bleeding and may be able to assist in getting something from old PMC.

2) Hire a real estate attorney in Indiana to send threatening letter to PMC. Cost $100-250 and may be all that is needed.

3) You may need to file a lawsuit and report them to the state real estate board and attorney general.

@Ronald P.DM us for an intro to a broker that will work with you

@Michael Leeson deposit in your account via ATM with other checks, etc. Banks only check a percentage of these and tend to focus on larger check amounts.