All Forum Posts by: Saul L.

I have a great rental available - but it is in Detroit proper - Zip 48223. 

If relevant for them- let me know. - Thanks

Thanks @Marina Shlomov - don't keep us in suspense- what was your opinion and why did it change. I have to make a decision and so far the vote is heavily in favor of pursuing ?

Sorry Molly, I don't know Baltimore at all- I am sure the local BP members will be able to give some direction.

Meanwhile a place to start is the City Data website here.

You can find a fortune of interactive statistical information on the city, from income, property values, race, unemployment and a lot more-  and drill down to the level of zip code, neighbourhood or block by block info. 

Shalom Molly,

I can only agree with @Steven Trumpet and @Russell Brazil . As you are going to be "house hacking" (living in a multi family, while renting the others), you have to aim for a better place in a good neighbourhood. 

Even if you were not going to be living there, I wouldn't recommend buying a low grade property as a first investment.-  I own properties like that and the risks are far more complex than they look - maintenace, repairs, evictions, vacancies, vandalism etc etc. The extra cost of a better property is well worth it for peace of mind, and stability of income. Once you have found your feet, built your team, know the areas, have experience  - you can consider taking on a low end property for the higher return, and even then tread carefully.

Wish you all the best in your new life in the US and Real Estate Investing.

Hi Barry,

Think we may have met on my last visit to Detroit.

Keep up the good work.

Thanks all for the input and help.

@Jeff Rabinowitz - that is exactly where I am at. I have a possession judgement, but no money judgement, no forwarding address, no place of employment.

@Richard Dunlop - you never cease to surprise me. Good for you. ( Dont jump to hard on that great old wood floor in your house- you just might find yourself in the basement :)  

Joel thanks for such a detailed response - not sure all the terms are familiar to me - but will do some research.

So far a landslide victory for Option 1- get a judgement.

Anybody think otherwise ?

Thanks all for the input.

Thought I would throw this one out to the wisdom of the masses of the good people here on BP, and see if it can help me come to a decision.

I won't bore you with all the details of a mismanaged property and non paying tenant that eventually had to be evicted, as I am sure most of you have heard it all before - especially with the properties in Detroit.

I now know that the tenant was living solely off social security with a total income of $2360 per month, and probably couldn't afford the property from day one anyway - (rental was 800 pm). The original PM (now fired) didn't take a security deposit from them and with all expenses, water and electrical bills etc. they have left me with an outstanding debt of around 2200$. I am at significant loss on this investment , and haven't been able to get it properly cash flowing since I bought it in Dec 2014.

I have approached them and attempted to negotiate a payment plan, but got the royal FU.

They are a family of 5, she claims to have major health problems, surgery etc, claims to be homeless as a result of the eviction etc.- difficult for me to assess the accuracy of these claims.

My dilemma is obvious and I am sure many of you have faced similar:

1. Do I pursue this debt to the fullest extent I can, possibly recouping some of my losses - Small Claims Court or Collection agencies.

OR

2. Do I write this off as the cost of doing business, and move on ?

The things I am considering:

In favor of Option 1:

The principle - I hate the mind set of people who don't take responsibility , believe they deserve to get everything for free, live in your property for months without paying rent or bills, and won't even discuss settling a debt. If you can't afford a commitment don't take it on - and if you did, bear the consequence.

In favor of Option 2:

I may not ever see 1 cent as I am not certain that they are collectible even if I do get a ruling in small claims - as a result if I sue I will just have incurred further costs with no result.

In the process I may be creating a lot of additional hardship for an already destitute family ( I don't want to say taking food from the children's mouth ). In another context if this family had approached me for charity, I would probably have considered helping them out.

What would you do -Option 1 or 2 (or something else) ?

All opinions or suggestions welcome.