All Forum Posts by: Jeff Rabinowitz

Metro Detroit RE Investors (look for @Tom A. ) meet on a variable schedule, often in Troy. Renegade Detroit Investors (look for @Jeremy Burgess ) meet the second Tuesday of each month, lately in Southfield. MREI (look for @Wendy Patton ) meets in Troy the third Thursday of each month. REIA of Oakland (look for @Drew Sygit ) meets the second Thursday of each month in Madison Heights. There are more groups, REIA of Wayne, Macomb, etc. A brief web search should identify most of them.

There are a lot more differences between cities you should consider than just the tax rates. Some require rental inspections, some don't. Some of the cities that require rental inspections have been overreaching lately. We are fortunate that there are many REIA groups in SE Mich. You can find one almost every week. It would be wise to attend, meet some other landlords, and compare notes before choosing a property.

@Liwen Gu, it takes time to set up and fund a self directed IRA so you should set the account up before you start lining up investments. You will have to decide on a custodian. There are now many choices. All of them have slightly different fee structures and may offer different account choices. In order to find a good match think about the types of investments you are likely to make. Will your account be a traditional IRA or a Roth IRA? Do you wish to be a lender, operate rental property, purchase stocks, metals, or any other of the multitudes of possibilities? Will you be making many transactions or just a few every year? Will income come into the IRA in large chunks or in several small payments each month? How much money will you be putting into your IRA and how large do you expect it to grow? Once you make some decisions, search for custodians and compare their offerings and fee structures to your plan. You are likely to find posts about the companies you are considering on BP.

If you are charging under market rent every month you are losing money. Why would you do that? You options are not limited to those you list, they are unlimited. If an appropriate rent increase prompts your current tenant to leave you will have the opportunity to replace them with a tenant at market rent. Sometimes, the way you approach the tenant about the increase can make the process much easier. I wrote about the ways that I have done this in the following blog: My Tenants Thank Me for Raising Their Rent. If you have any comments or questions, I would appreciate if you leave them on the blog post as I am more likely to see them there.

We have an abundance of Real Estate Investor Association (REIA) meetings in our area. It may be worth attending a couple if they coincide with your trip. Metro Detroit RE Investors (look for @Tom A. ) meet on a variable schedule, often in Troy. Renegade Detroit Investors (look for ) meets in Troy the third Thursday of each month. REIA of Oakland (look for @Drew Sygit ) meets the second Thursday of each month in Madison Heights. There are more groups, REIA of Wayne, Macomb, etc. A brief web search should identify most of them.

No. I prefer to stay close to home in SE Michigan.

This can be a great service to your community. It sounds like the Fire Captain has done this before and knows what is required in your locality. I have donated a house to my fire department and they were very appreciative. I had to get a demo permit, disconnect all utilities, and inspect for asbestos. My fire department cleared the shrubs and removed some trees. I was responsible for cleanup after the burn but there was very little left and it was easy. I shared further details in my blog: I Burned My House To The Ground.

If you have further questions, please leave them on the blog as that allows me to reach others who may have similar questions.

Of course. Some buyers will not purchase a property that has evidence of a major repair out of concern that the repair was not completed properly or that it may recur. A structural evaluation or inspection report may convince some buyers that the repair was completed properly. Some buyers will demand a discount before buying such a property.

You don't indicate how the other 80% of the property is encumbered. If you have the deed to the property, I would assume that the seller has a lien (mortgage) recorded against the property. You must ensure that their lien is discharged when the loan is retired.

If you do not have the deed, you may need to get it (unless the deed is held by another entity in a contract for deed). Real estate laws vary greatly form state to state. It is safest for you to make the final payment through a title company to make sure that you have a proper deed and that the seller pays any transfer taxes that may be required when the deed transfers. It may be wise to consult a real estate attorney to protect your interests if attorneys are usually involved in real estate sales in your state or if you are not comfortable with the advice from the title company.

If the current tenants wish to purchase the property, why isn't the owner exploring that sale? If the tenants do not qualify for financing, this could still be an excellent purchase for an investor. The owner is hurting and needs relief. What price are they willing to accept to end their pain?