All Forum Posts by: Sidel Murray

Hello Andrew, 

I wish I had a suggestion for a property management company for you, unfortunately I don't. The out-of -state investors that have purchased many of my wholesale deals have had their own management in place. I have not done any personal business with these companies, I'm a little hesitant to refer them to you. I personally manage my own rentals, however if you need assistance finding properties in good neighborhoods or quality contractors, I'm your guy. Let me know if I can be of assistance. Best of luck to you!

Hello Edward,

Investing in Detroit is an excellent idea if you can find the right people to work with. If you can find dependable boots on the ground that can help navigate the potential landmines that are all around, good contractors and property management, you'll do fine.  Many of the out of state/country investors that lose money in the city do so because they had dealings with individuals that didn't have the highest ethics. Instead of having a long term vision of creating a repeat buyer, they try to get rich on one deal. Detroit has some bad apples, just like any other city.  A mentor of mine said, "There are only 9 or 10 bad people in the world, the problem is they move around a lot."  This is the issue with Detroit. I am a native Detroiter and invest in the city. I know where the great rental markets are, and the areas to avoid. When I sell deals to out of state investors, they are deals that I would purchase myself if I hadn't depleted my funds on other properties. And they are in neighborhoods where I personally invest. This helps keep the number of vacant houses in my rental area down which in turn makes the area more desirable to potential tenants. If I can be of service, please let me know.  BTW,where is your property your renovating in Detroit located?

Hello Katherine,

Thanks for not just listening to the naysayers and all the negativity that has been portrayed about Detroit in the media and on this sight. Detroit is a potential goldmine if you have the right team in place. Does Detroit have violence? Yes, just like every other major city in the world. But IMHO the rewards out weigh the risk.  If you have trustworthy boots on the ground, a good contractor and good property management you should be fine. The most important thing to do is have boots on the ground, someone that knows the city inside and out, which areas are great for attracting quality tenants that stay a long time. I am a native Detroiter and have lived here all of my life.   I own rentals in Detroit and the suburbs and would have to say, if you aren't to concerned with appreciation and are focused on cash on cash return its difficult to beat Detroit.

Welcome! You're definitely in the right place.

I have experienced this dilemma a few times in Detroit.  Legal eviction may seem like the right thing to do however from mine and the experience of others I would go the cash for keys route. The reason being you don't know the mindset of the person occupying your property and what they may do to it out of spite, if evicted. I have investor friends that have had tenants put cement in the main drain in the basement and leave the water running damaging the foundation.  Another partner of mine had his rental set ablaze. These are the worst case scenarios but they do happen.  I would recommend finding someone in Detroit willing to  negotiate terms with the occupant on your behalf. This has been what has worked for me. If the tenant doesn't answer the door, no problem just have your person leave a note stating your proposal with a local phone number. If the tenant doesn't respond to this then you have no choice but to go through the courts, just make sure the place is insured.  Good Luck!

Welcome! This is definitely the right place to gather useful and applicable information about REI.

Welcome! You're in the right place.

Not sure if you rent in the city of Detroit or the burbs but in Detroit you can have your tenant complete a water affidavit. This protects you from being stuck with your tenants water debt. It is imperative to complete this form because the water department will not turn the water off as long as the property is occupied even if the bill is sky high. The affidavit is a simple to complete form that you can get from the water department. The info needed from your tenant is their ssn, drivers license number, employee info among other things. There is also a $112 deposit needed from the tenant. I have my tenants complete this form when the lease is signed. The paperwork has to be notarized as well. This paperwork has saved me hundreds of dollars.

I’m an investor in the Detroit market. I own several properties in the city of Detroit and have been investing for years. I agree with some of the other posts, you definitely need to visit Detroit and see the market for yourself. You have to speak local investors and hear their stories. You have to understand how your tenants will be. Personally, I love the Detroit market. The acquisition prices are low and the rents are high. The rents are comparable to those of the suburbs but there are many people that don’t want to move to the burbs. There are a lot of slumlords in the city, they do a terrible job on the rehab of the property, then neglect repairs that need to be made once they have a tenant in place. This will be your competition. As expected the turnover for these landlords will be high.. If you have a clean, nicely rehabbed property the tenants will stay, and stay a long time. I do a decent job of rehabbing the properties and make sure that I screen the tenants thoroughly and haven’t had any issues since I began investing. I have been investing for 4 years and have tenants that have lived in the properties the entire time. The only eviction was my first ever tenant. True, the school district isn’t the best but many tenants don’t care about that. Many of them just enroll their children in a better district free of charge. The appreciation isn’t the greatest but you can’t beat the cash flow. It’s amazing to me that even with all of the negative media the city gets the demand for rentals is skyrocketing. Many days I wish I had more money because my tenants are always asking if I have more rentals. If you’re truly interested in investing in Detroit reach out to me I would be more than happy to show you around and answer any questions you may have.

Welcome Ryan!