All Forum Posts by: Drew Sygit

Travis, can you please share with the thread what lenders will do loans on a Detroit rental property under $60k...

Travis, are you recommending getting a mortgage on a Detroit rental or a land contract?

We can meet up next month at this:

https://www.reiaofoakland.com/

Not many great deals on the MLS anymore! Recommend checking out Pontiac or Hamtramck before Detroit - unless you are really familiar with Detroit and all its risks for rentals.

If you want to stay in the 'burbs, check out Hazel Park, Oak Park, Warren, Eastpointe and Harper Woods.

@Hayden Hirzel I agree with Chris. Do not over-leverage, and even more importantly, protect your cashflow. Have seen a lot of investors lose properties to foreclosure because they cut their cashflow down too much.

Where are you looking to buy more rentals?

@Kurt Rath: you get to know the city and don't go to certain neighborhoods:)

Travis is right, $35k isn't going to work. At best you may be able to buy something that's rundown, but you'll need funds to fix it. You also have to be very careful where you invest in Detroit. No one ever believes it's actually block-by-block until they visit! Detroit was built for 2 million people, less than 700k now - which means a lot of excess houses, which means a lot of bad neighborhoods. Another challenge is it's very difficult to get mortgages on Detroit properties.

You may want to consider the Ring Cities around Detroit, which still offer great returns and allow for financing.

Josh, as others have already written, agents aren't going to do much for 50% of one month of rent. So, your options are:

1) Offering agents a higher commission for finding a tenant
2) Hiring a PM. 
3) Hiring your own handyman/showing person. 
4) Keep flying in

Challenge Questions for You to Think About:

1) How much is it costing you to fly in vs. hiring a PM?
2) How are you screening the applicants you find yourself? 
3) Have you registered your rental with the BSEED and started the inspection process? They write $750 tickets if you don't!
4) How have you or would you, evict a nonpaying tenant?

We recommend investors start with the Ring Cities - those cities that touch the City of Detroit. Once you become more familiar with Metro Detroit you may then want to buy rentals in the City of Detroit.

Hilarious! Did you just create that or is it a cut & paste response you use?