All Forum Posts by: Account Closed

It's cheap for a reason. Search the forums for "Detroit" and you'll find out why.

@Jeremy Tillotson that's one way to go, but from a behavioral economics standpoint, the tenant has no reinforcement to conserve water. Plus, if they stop paying rent, you're still paying their water bill for 2-3 months during eviction. 

We state in the lease they must do water switchovers in 30 days or less. I implemented this strategy after getting hosed for $1500 water bill b/c: 1) tenant knew water company wouldn't turn off the water (they amended this strategy in 2014) and 2) property manager wasn't following up with all payments.

If you're a Detroit investor, call DWSD's landlord unit, and they can email you the forms so you can give tenants hardcopies the day they sign the lease. This way, tenants can speed through the DWSD hassles as fast as possible. My property manager makes it crystal clear we will evict if this is not done, so it hasn't been a problem of late. If memory serves, the last tenant dropped paperwork off early so it was in their name the first day of the lease.

cc: @Dan Gheesling 

@Andrew M. 

There are states I'll invest in and states where I won't. Global warming isn't anywhere near the top of the list of reasons why I will or won't, not for single family or multifamily housing anyway, but if you're looking at buying large tracts of land or commercial land (i.e. NNN leases), then yeah, GW might be a 20-50yr concern.

But the most important point you brought up is water availability via climate change. Areas where water is abundant versus where there near annual shortages are a major concern. Areas like Las Vegas and SoCal are strictly off limits for me b/c all it takes is several years of drought and bottom falls out. Of course, this is a very long tail event where probability is very low, but if you're into long term risk management, water availability is a big concern. 

Add weather related events and lower elevation areas (Gulf Coast states) where frequent flooding is an issue, and there is simply no way I'd ever invest in areas like Florida or New Orleans. Even the Dept of Defense has predicted Naval Bases along East Coast (i.e. Norfolk) will be affected by climate change, so if the military is budgeting in future costs, it's probably worth factoring in to your cost benefit analyses as well. 

Can anyone recommend a portfolio lender in the Detroit Metro area? I've done several google searches and came up empty.

I have several properties in Detroit and surrounding suburbs (HW, GPP) that I'd like to begin cashing out some equity. 

There are several older forum posts on this subject, and they've been removed by forum moderators (presumably b/c it's viewed as commercial/marketplace), but if do know of a portfolio lender, please send me a private message with the contact info. 

Thanks all.

As long as the lease states "tenant is responsible for all utilities" or something to that line of reasoning, the local legal system should hold them accountable if you can prove they didn't pay it. 

Whether they pay it or not, even if you win when taking them to court, is a different matter. (Had this happen to me once and tenant still haven't paid up 2yrs after winning judgment.) 

I have them initial the section of the lease that says "tenant is responsible for all utilities" and if not converted into their name within 30 days after move in date, it is grounds for eviction. Seems to work well. 

@Mark Forest 

I agree with most other replies... it's price >high based on comps. Moreover, it's a 2/1 priced higher than many 3/1s. Ex) there is a fairly nice rehab'd 3/1 rental a few doors down on your street priced at $575 vs your $675, so you're being undercut by a significant margin.

Best advice: find the closest comparable rental property for your 2/1 and price it similarly. 

Can I get a referral for a title company in the Detroit Metro area (Wayne Co, Oakland Co, Macomb Co) that has creative financing expertise? 

Preferably, someone who can close land contracts and subject to (Sub2) deals?

Thanks Nico. I'll check them out.

Can anyone recommend one (or more) modular townhouse builders? Looking to build a few 4 unit townhouse structures in southwest Virginia and east Tennessee in the Tri-Cities (Bristol, Kingsport, Johnson City) market.

Map is too far out of date to make any significant conclusions, much less prognostications. 

Ex) North Dakota is booming b/c of hydrocarbon market. Builders can't build fast enough and rents are among the highest in the country. 

Ex) City of Detroit is among top quartile of US cities in job creation thanks to rebounding auto market. 

Fair warning: take these clickbait headlines with a grain of salt.