All Forum Posts by: Account Closed

Do you have an estimate on cost of repairs? Zillow "zestimates" are pretty much useless in Detroit. What did you pay for it? 

If it's empty and boarded up, it's just costing you money, so only real choices are:

1) fix it and rent it

2) sell it

Otherwise the carrying costs are just adding up every month. 

You will need to verify with your inspector that the big ticket items will actually be inspected. Some inspectors will look at a furnace, for example, and just look for visual damage, turn the thermostat to make sure it's heating, etc., but that's about it. Many will have a clause in the inspection report saying something like "buyer should seek furnace company for blah blah" to cover their backside. 

Other inspectors will merely use a pair of binoculars to visually inspect the roof from ground level vs pulling out a ladder and doing it the old fashioned way. 

So bottom line... check with multiple inspectors and verify they will do the important stuff. Your agent should know a few, but it's kinda up to you to get value out of what you're paying for. 

If anyone knows an inspector in Royal Oak, MI, that does this, please list them to assist Mr. Wilson. 

I have a duplex in GPP and I pay about $150-$180 every 2 months, so that sounds close to par. 

Most conventional banks won't do loans under a set amount (last I checked it was ~$50,000). 

You may be able to find a small bank or credit union near you that might do it. 

Another source might be an unsecured loan from a P2P lending company, like Prosper or Lending Club, but your credit score has to be pretty good. 

The big question: is it in Detroit Proper or Detroit Metro. That will determine if 90k is a value or overpriced. 

2nd: what work is needed or will be needed soon? How old is furnace, what is roof condition, does basement leak, etc, etc? I can go on, but try to rule out the big ticket items and/or negotiate price down if they need replacing now or soon in future. 

3rd: if you'll be the OO, your rental income will be cut in half.

4th: check around for lower insurance rates. $150/month seems high. For stuff like this, I always get quotes from multiple vendors. 

Job hasn't been started yet. Not sure who was chosen, but apparently there was quite the backlog. 

got a few recos on this thread

http://www.biggerpockets.com/forums/24/topics/2096...

@Liz Rogers

Put yourself in the buyer's position: buyer has 5 foreclosures selling at $X and your home selling for 1.2 * $X.

(Disclosure: just picking 20% as an example here.)

Would you even bother looking at the home selling for 20% higher than the other 5 in the neighborhood? Granted, there might be better cosmetics or other buyer-specific variables the prospective buyer wants, but by in large, why would any prospective buyer overpay by 20%?

In the biz, we call this the endowment effect. It's common. Most people think their home is worth more it's their home. Nothing wrong with it. Just have to recognize it and fight through it.

Hope this helps. 

George,

It's for a friend of mine in Grosse Pointe Woods. Primary resident home, standard 2 story, ~1800sqft. She would be paying directly him directly. She could arrange for dumpster or your guy could do so as well. 

Can anyone recommend a roofing contractor or company in the Detroit Metro area? Home is located in Grosse Pointe, MI. 

Would prefer a recommendation from someone who has used roofer's services on their personal residence or investment property. 

Private messages are welcome as well.