All Forum Posts by: Thomas Smith

I have owned a property in Dearborn for several years, and while I have great tenants who take care of the house, there are things to watch out for in this city. My biggest headache has been the CofO inspection every three years. I take good care of my tenants, and they mind the property well, but these inspections are still costly. I have had to replace sections of the driveway, at a cost of about $2000, because it was cracked, for example. I used to live in Dearborn, and it was a nice city. However, they are incredibly tight on landlords for even the simplest things. Just be sure to account for significant possible extra costs every three years at inspection time.

Thanks everyone!  @Dakota Cooley, I'll reach out to you directly.

Thanks @Jeff Trevarthen and @Richard Ball.  I was expecting I may need to use a delayed financing approach as you mentioned, based on several of the BP podcasts.  I'll check into CitiMortgage, I'd definitely prefer to not have to hold up such a significant chunk of cash for 6+ months before being able to refi.

Thanks!

Hi all,

I am an out-of-state investor who previously lived in the area, and have owned a rental property in Dearborn, MI, for several years. I am now interested in expanding my holdings into Redford, MI or the surrounding area.

My question today is regarding whether most properties in the area are being purchased in cash, or if there are banks (lenders) in the area that are willing to lend on properties valued at about $60k. Considering a scenario of putting down 25% on such a property, you're looking at financing only about $45k - less than most banks are willing to work with in my experience. Considering that the majority of properties in this area are valued <<$100k, and out-of-state investing is not uncommon in the area, I'm curious whether lenders in the area are more willing to work with these low value loans on investment properties. I've also considered a cash purchase, and then move to do a cash-out refi once a tenant is in place, but I'd rather not tie up such a significant chunk of capital for the duration if its not necessary.

Any experience or suggestions from those familiar with the area would be greatly appreciated.

Thanks!

-Tom

I'd like to second what @Mike Carino said about Dearborn inspections.  I own a property in Dearborn, and every 3 years when the C of O inspection comes up, I start having nightmares.  Cracks in the driveway concrete, vacuum breakers on the outdoor spigots, etc, will nickle and dime you (or at times, hundreds or thousands) at every inspection.  My tenants and I take very solid care of the property, but the inspectors still find things you'd never think of.  Its a nice town, and I have great tenants, but the city is very strict - prohibitively so.  For this reason, I'm looking in the surrounding areas for my next property, as others have mentioned, not in Dearborn.

Good day to you all, BP-

I live in South Jersey, and own a single family rental property in Dearborn, MI.  This property was my primary residence while I lived in the area.  I moved out of the area for work several years ago, just as the housing bubble burst.  With the property suddenly under water, I decided to rent and wait it out.  Several years later, I still own and manage the property, and have learned many lessons in landlording and management.  I am now looking to expand my holdings in the Dearborn / Redford area, focusing on single family buy-and-hold with solid cash-flow.  I am very interested to meet others investing in the area, and would greatly appreciate recommendations for skilled and trustworthy realtors and property managers, who are experienced with out-of-state investors.