housing

[richie]

hi!,
i'm currently looking into buying a property in Detroit and was after a few pointers.
can anyone please advise me on where there are good areas/bad, whats the rental market like ? and what to look out for in these 'too good to be true ' deals found on #bay?
one other thing: is a non us citizen allowed to buy a property here and rent it out?
many thanks,
rich

[Gannon]

As far as I know, richie, there are no restrictions against foreigners or out-state property owners renting their properties...it is actually the NORM here in the city.

I know people who live here who've rented out their properties and had them gutted and destroyed, so you'd do much better with at least a local active property manager with handyperson skills to save on maintenance and upkeep...and actively babysit the property or properties.

The neighborhoods are a crapshoot...there are some killer-cool areas and some obvious bad ones...and it would take more than a post or four on an anonymous internet forum to get trustworthy information.

I could put you in touch with ONE very connected individual who is quite handy AND active in the community that would likely get you the best return, because of the steady stream of college students likely to rent your homes. She posts on this board, too, as JeanofArc.

She rents the rooms of HER beautiful, old house...and always has her finger on the pulse of the Woodbridge community, immediately west of Wayne State University. She would easily be able to manage North Corktown houses for you, too.


Other than that, I wish you good luck. If you choose to visit town for a tour, I'd be happy to assist in whatever legal and ethical way you require.

Cheers

[richie]

hello Gannon,
many thanks for your speedy response.
i realise that asking people to comment on different areas would lead to allsorts of trouble!!!
places i've seen cheap properties in were Hamtranck, Wayne and near the airport.
i will be in touch with your friend soon,
rich

[Frumoasa]

My first advice is to visit before you buy. You really need to get a firsthand idea of our area before making a major purchase.
In response to Hamtramck, I live just north of Hamtramck and know the area very well. It is a good rental area and a fun, vibrant community. If you are looking to buy in the city of Detroit, I suggest the area E of Conant and S of Carpenter. It is a cute, family oriented neighborhood that touches Hamtramck. My area is E of Jos Campau and N of Carpenter...the streets get consecutively worse as you go north from Carpenter...tread carefully. I personally do not like the neighborhood W of Jos Campau and N of Carpenter...many houses have been torn down already and it gives the neighborhood a gap toothed feel.
The city of Hamtramck is generally a safe bet with cheaper houses being found S of Holbrook and W of Jos Campau. The heart of downtown is generally considered to be Jos Campau south of Caniff, so the closer you get to that area, the more desirability your rental will have.
Other areas I have seen with quality housing stock and family appeal are the area around Lonyo and Addison in the 48210 zip code and Warrendale in the 48228 zip code. They are both close to the city of Dearborn which adds to the convenience of the area.
Once again, I urge you visit, take pictures, decide what you want and are looking for, then make your purchase. Good luck.

[brandon48202]

You might want to consider Woodbridge. Here is one for sale on Commonwealth St, take a look at these photos:

http://pub.realcomponline.com/publis...43395648534B32

[davewindsor]

The city of Hamtramck is generally a safe bet with cheaper houses being found S of Holbrook and W of Jos Campau. The heart of downtown is generally considered to be Jos Campau south of Caniff, so the closer you get to that area, the more desirability your rental will have.

That sounds like a very good pick. I drove through Jos Campau south of Caniff last night. I was quite impressed. Most of the retail shops on Jos Campau were rented. Lots of people walking along the streets. The side streets had those two and a half story houses with very narrow setbacks from the next house. There was even a fully rented plaza with a grocery store just off Holbrock. I should have timed the drive with my watch, but it didn't seem like it took more than a 5 min. to get there from the RenCentre.

[bartock]

My first advice is to visit before you buy. You really need to get a firsthand idea of our area before making a major purchase.
In response to Hamtramck, I live just north of Hamtramck and know the area very well. It is a good rental area and a fun, vibrant community. If you are looking to buy in the city of Detroit, I suggest the area E of Conant and S of Carpenter. It is a cute, family oriented neighborhood that touches Hamtramck. My area is E of Jos Campau and N of Carpenter...the streets get consecutively worse as you go north from Carpenter...tread carefully. I personally do not like the neighborhood W of Jos Campau and N of Carpenter...many houses have been torn down already and it gives the neighborhood a gap toothed feel.
The city of Hamtramck is generally a safe bet with cheaper houses being found S of Holbrook and W of Jos Campau. The heart of downtown is generally considered to be Jos Campau south of Caniff, so the closer you get to that area, the more desirability your rental will have.
Other areas I have seen with quality housing stock and family appeal are the area around Lonyo and Addison in the 48210 zip code and Warrendale in the 48228 zip code. They are both close to the city of Dearborn which adds to the convenience of the area.
Once again, I urge you visit, take pictures, decide what you want and are looking for, then make your purchase. Good luck.

What sort of place is Turtle & Inky's?

[Frumoasa]

I have never been in there, I am not a very "bar" type of person, but I do pass it a lot on my way home. One that I am more familiar with is the Witchcraft Krakus bar on Jos Campau N of Carpenter. It is busy and lively on the weekends, sometimes when I drive by, the door is open and it seems like folks are having a good time. It seems like it attracts an older clientele and I can vouch that the food is quite good and reasonably priced.

[Hamtragedy]

I maintain about 30 rental properties and have a few myself. I maintain about 10 for a doctor who lived in Chicago for a long time and just recently moved back to the middle east to raise his family.

We keep all the properties in tip-top shape with respect to paint, plumbing, electrical, and especially the exterior, which are landscaped, [[many neighbors have followed suit for years), especially before a renter moves in. We maintain our old original bathrooms and kitchens as much as possible because they were set in concrete and hold up extememly well when maintained. This minimizes several service calls immediately after a new renter moves in, but renters often want to "test" a landlord to see how quickly they respond to "problems." We can usually figure out after a couple months whether they are demanding [[i.e. can I paint? "If you would like to hire a professional painter we can recommend one, but keep in mind the property must be returned as you found it", or Can I have a dog? "No, your application and lease specifically states no pets. ") Sometimes the demanding ones are shitty tenants, other times they are spectacular. We normally don't charge for repairs except for broken windows or if we pull a hambone out of a toilet, usually because they didn't call for the kitchen drain cleanout, which they know in advance are free of charge.

We have some Section 8 tenants who have been there for 15 years and more, but they must also keep up their end of the bargain with respect to annual inspections.

The last couple years the quality of renters has fallen, and here's why: The cream- of- the-crop renters were willing to pay higher rent for properties in nicer shape. During the housing boom, many bought houses for the same amount they were paying rent. Unfortunately, many of those top renters succumbed to the housing crisis / lost their jobs. They are spit out, and right back at the bottom of the renter pool.

As a good landlord, your goals should be keep tenants for as long as possible. You should also strive to make upgrades after each tenant moves out, [[new windows/glazing/storms,
new roof, garage painting, nice exterior doors). Lately, we spend way too much time cleaning up after shitty tenants. They are not destructive, they just never washed off a baseboard or a cupboard, vacuumed, or mopped the floor for two years. After two weeks of cleaning someone else's filthy-ass shit, you've blown the budget on the new storm windows. And since they were three months behind when they moved, the month and a half deposit is already spent.

Detroit taxes are not cheap. An average rental in Warrendale [[non-homestead) is upwards of 3K a year. Add $600 annually in insurance, if you can find it. Insurance companies are reluctant to underwrite a house in Detroit before it is occupied. You're up to $3600, before you even make a house payment. Figure 10% of your income for maintenance [[furnace won't light, water heater replacement, lock replacement or board up/window replacement after a break-in). If you can charge $700-900 a month in rent, consider your self fortunate. $750/mo for 12 months is $9000, half that for expenses [[$4500 mentioned above). Do the math. None of this includes house payments.

The too good to be true ones you see on ebay are just that. Be extremely careful. The new copper you just replaced will disappear like the old copper. And you can't run PEX everywhere!

The properties I maintain are in the Rosedale/Minock Park area, Warrendale [[which has been decimated by the housing crisis, I'd stay away) and Hamtramck [[which is not a bad bet, only the average rent is btw 450-650 per unit/flat/house).

Good luck.