All Forum Posts by: Zac Burk

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Lincoln Park.

Purchase price: $74,900
Cash invested: $1,200

Bought for 74.9 at asking.
Lower unit was turn key.
Upper unit needed a massive facelift.
Just sanding and hardware updates on doors and what not.

She needs a new roof this year but I'll do it myself with two friends.

What made you interested in investing in this type of deal?

House hacking!

How did you finance this deal?

Conventionally at 20% down.

What was the outcome?

She cash flows 800$ a month before capex.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $105,350
Cash invested: $12

Purchase price - 105,350
ARV (structural repairs)- 140k
ARV (renovating) - 160+

What made you interested in investing in this type of deal?

Home values double my purchase price within the direct neighborhood

How did you find this deal and how did you negotiate it?

MLS and very little. Talked him down about 8k. No inspections.

How did you finance this deal?

FHA. 3% down.

How did you add value to the deal?

So far, general clean up on the exterior and interior. Basement was flooded and filled with mouse droppings. Removed construction waste and prepped for structural repairs.

I've been looking into Dearborn well forming the "what's next" agenda. They have some really nice multi families there. I have a rental in Lincoln Park and reside in Allen Park on Allen Road for a live in flip currently. Would love to chat! 

It all started after a divorce. I picked up work to stay busy. Kept myself outta my head. After 3 years, I had a hefty chunk saved up and a plan to execute. I purchased my first home, a duplex, conventionally. It wasn't a major overhaul. The lower unit was turn-key and the upstairs need a entire facelift. Altogether, my payment was 545$ and I rented the 2nd unit for 550.  I refinished the floors upstairs and signed a lease with a friend who was homeless. The unit was terrible but he paid and we both understood the circumstances. A year later, I moved out of the 1st unit and finished the 2nd unit. Rent was raised a 100$ and now with a 2nd lease I'm cash flowing 800$ monthly before cap-ex. All the cash I saved from house-hacking went straight into savings for my next place. I now have a live-in-flip that i purchased for 3% down, roughly 30% under average per sq/ft. 

Id do it! I didn't qualify in MI. There's different programs here. MSHDA is doing 3% down conventional loans for first time home buyers right now. Its a great way to get into a duplex for very little down AND not have to pay PMI. Although here, the market is just crushed with this program south of Detroit. Slim pickings...

Just an article I read tonight. It seemed worth sharing. Anyone out of state and thought about Detroit? Thats my home! Right by Brightmoor. https://detroit.curbed.com/2018/12/6/18129253/detroit-rent-income-report-largest-increases

Originally posted by @Miranda Simon:

Originally posted by @Will Gaston:

@Miranda Simon pay retail price. It's THE cardinal sin in my book.

 🤔 I wonder if paying retail price can ever yield positive results for a real estate investor?

If the numbers work they work! My first deal was a duplex off the MLS at the asking price of 74.9k, 15% down owner occupied. I was out in 8 months and it's now cash flowing 750$ a month. It was in an area most locals/investors pass over. 1 mile north is the Southwest Detroit city limit. I'm pretty new to this and learning at my own pace through trial and error and posts on this forum. From a complete newbie here, I would say include a late fee in your leases. I've only signed 2 leases now but my very first tenant has paid late every single month. She's never behind month to month tho.

+1 for watching out for personality disorders. They will make their problems your problems.

Originally posted by @Jim Pellerin:

3. Thinking a needed money to get started or to grow. Once I switched to lease options, I grew like crazy without any of my own money.

In what ways did you utilize lease options and what were you doing before this discovery?? Thanks in advance!! 

The first duplex was turn key. I redid the floors upstairs. The second house I've only done work to the firepit and gutters. I am going to appeal taxes in March and start work immediately. Might even take the shed down until then.. 🤔

Hey guys. I've been spinning my wheels for a bit. I bought my first duplex as a house hack with 20% down. In August a year later, I bought a sfh, 5% down, to live in and work on to flip. But now i just have enough income for some savings + living cost + materials and then a rainy day fund. I cant gather a 25% down payment for another duplex for awhile. What are some avenues to make this happen in a short term? My credit is fine with debt to income. I have a duplex available 5 blocks north of mine asking 65k. I'd hate to see it go.