How Foreign Investors Can Buy Detroit Real Estate the Smart Way


Discover how foreign nationals can invest in Detroit real estate safely and profitably. Learn how to set up your U.S. LLC, secure DSCR loans, and navigate FIRPTA taxes — plus meet the trusted Detroit team that helps global investors build cash-flowing portfolios.

Why International Investors Are Turning to Detroit

Detroit is one of the few U.S. cities where real estate investors can still find affordable properties with strong rental returns. While many coastal markets rely on appreciation alone, Detroit continues to deliver real ROI through rental income.

Most Detroit investment properties still sell for under $100,000, yet rents remain strong. This balance allows foreign investors to build income-generating portfolios — even from abroad — without the inflated prices seen in markets like Miami, Los Angeles, or New York.

Detroit’s resurgence is powered by new development, expanding downtown employers, and a growing demand for quality rental housing. For investors, it’s a rare opportunity to get in early on a city that’s rebuilding itself.

Step 1: Set Up Your U.S. Entity (LLC)

Before purchasing property, foreign investors must create a legal business structure in the U.S. — typically a Limited Liability Company (LLC).
Setting up an LLC in Michigan involves six simple steps:

  1. Choose a name for your LLC

  2. Get a Michigan-registered agent

  3. File your Articles of Organization

  4. Draft an Operating Agreement

  5. Apply for an Employer Identification Number (EIN)

  6. Open a U.S. business bank account

You can complete this process yourself or hire a professional service.
For example:

  • Notary setup service: around $300 (basic setup, no legal guidance).

  • Full setup service with banking connection: around $495, but if you deposit $10,000, you receive a $250 rebate — effectively costing $245.

  • Use a lawyer. Richard Sharpe

🖇️ Recommended resource: Michigan Registered Agent – Start an LLC

Step 2: Secure Financing with DSCR Loans

Foreign investors can qualify for DSCR (Debt Service Coverage Ratio) loans, which are based on property income rather than the borrower’s personal income or U.S. credit history.

Here’s what to know:

  • Most lenders won’t finance homes under $100,000.

  • I can connect you to the lender who will do financing under $100,000.

  • The property must appraise for at least $80,000.

  • If purchasing multiple homes, each should appraise around $50,000.

  • Interest rates are typically close to prime, with bridge loans available for fix-and-flip projects.

Bridge loans carry slightly higher rates but fewer fees — and can later convert into DSCR loans once the property stabilizes.

This structure allows international investors to build or refinance portfolios with predictable terms, even if they don’t have U.S.-based income.

Step 3: Build a Reliable Local Team

Investing remotely is only successful when you have trusted professionals on the ground.
Here’s the team I recommend (and personally work with):

  • Broker (Me): Sourcing properties and guiding negotiations

  • Pat: Finds the best investment opportunities

  • Andrew: Top-tier property manager

  • Erika: Handles title work and closings

  • Christine: Lender specializing in DSCR and bridge loans

  • Rick: Real estate attorney familiar with international transactions

Working with an experienced Detroit team protects your investment and ensures compliance with local and federal requirements.

Step 4: Understand FIRPTA — The Foreign Investor Tax Rule

When foreign nationals sell U.S. real estate, the Foreign Investment in Real Property Tax Act (FIRPTA) requires 15% of the sale price to be withheld and sent to the IRS.

The process differs depending on how your ownership is structured — whether your LLC is single-member, has a U.S. partner, or is held in a trust.

While FIRPTA can sound intimidating, it’s simply a tax compliance step that can be managed with the right guidance. Consult a tax advisor before selling any property — it can save you both time and money.

Step 5: Why Detroit Is Ideal for Global Investors

  • Low entry price point: Properties under $100K still exist.

  • Strong rental demand: Steady cash flow potential.

  • Rebuilding economy: Long-term appreciation prospects.

  • Investor-friendly laws: Michigan supports business ownership by non-residents.

  • Available financing: DSCR loans make it possible without U.S. income.

Whether you’re looking to diversify your portfolio or enter the U.S. market for the first time, Detroit offers one of the best opportunities for foreign investors seeking cash flow and equity growth.

Final Thoughts

Detroit’s market is at the sweet spot — affordable enough for new investors, but growing fast enough to reward early entrants. With the right structure, financing, and team, international investors can confidently own Detroit real estate from anywhere in the world.

If you’d like to learn more or get connected with my trusted local team, reach out through my email, Monique@greatdaypm.com, or watch my latest YouTube video where I walk you through every step visually.

11 Money-Saving Mechanical Secrets for Real Estate Investors

Practical HVAC & Mechanical Tips That Save Thousands on Rental Properties

If you invest in rental properties—especially in Detroit—your mechanical systems can make or break your cash flow. Furnaces, air conditioners, ductwork, drains, and boilers are some of the most expensive components in any home. Replacing or repairing them without the right knowledge can easily wipe out months of rental income.

At our REIA of Oakland meetup, we hosted an event called table topics, where different experts shared insider tips with new and experienced investors. I had the chance to film a session with Austin Matero of AJM Heating & Cooling, one of the most experienced and investor-friendly HVAC professionals in the area. Austin is licensed in heating and cooling, pest control, and residential building, and he has years of hands-on experience helping investors stretch their rehab budgets further.

These are the kinds of mechanical tips most investors don’t even know to ask, and the kind of knowledge that can save you thousands while improving your long-term rental ROI.

Here are 11 money-saving mechanical secrets every real estate investor should know.

1. Call Smaller Independent Contractors

(2:30)
Big HVAC companies come with big overhead—and big price tags. Independent contractors often offer fairer pricing, faster scheduling, and more personalized service. For investors working on multiple properties, these relationships matter.

2. Change Your Furnace Filter Regularly

(3:58)
A clogged furnace filter is one of the main causes of furnace failure.

  • 4-inch filter: change once per year

  • 1-inch filter: change every 3 months

This small maintenance habit protects your blower motor and heat exchanger and extends equipment life.

3. Hose Down Your A/C Once a Year

(4:04)
Most investors don’t know this incredibly simple, free maintenance trick. Spraying down the A/C condenser removes dust, pollen, and debris, helping the system run more efficiently and preventing early failure.

4. Don’t Waste Money on HVAC Tune-Ups

(4:10)
Austin is very direct about this: tune-ups are mostly a scam.
Save your money. If it breaks, call a reputable HVAC tech. Otherwise, don’t let companies upsell you unnecessary services.

5. Use Base Equipment for Rentals (80% Efficiency Furnace)

(4:45)
High-efficiency furnaces are expensive, require special venting, and cost more to repair. For most rental properties, a basic 80% furnace is cheaper to install, cheaper to maintain, and perfectly adequate.

6. Stick With Goodman for Cheaper Parts & Repairs

(6:25)
Goodman HVAC systems are affordable, reliable, and—most importantly—inexpensive to repair.
Austin recommends avoiding Lennox and Carrier, which have pricier proprietary parts and higher long-term maintenance costs.

7. Avoid Heat Pumps in Michigan

(7:38)
Heat pumps simply aren’t efficient in colder climates like Michigan. They run constantly in the winter, driving up utility bills and frustrating tenants. Furnaces remain the best heating option for this region.

8. Add A/C, Dishwashers & Disposals to Increase Rent

(9:46)
Want higher rents and better tenant retention? Add:

  • central A/C

  • dishwashers

  • garbage disposals

These amenities significantly boost tenant satisfaction and make your rental more competitive in the Detroit market.

9. Avoid Boilers—Or Budget for Adding Ductwork

(11:31)
Boilers can be extremely expensive to repair and replace. If you’re buying a property with a boiler, factor in the cost of transitioning to forced air and the ductwork you’ll need to add.

10. Avoid Under-Slab Ductwork

(14:41)
Under-slab ductwork is prone to moisture, corrosion, and collapse. Repairing it means breaking through concrete—an expensive nightmare. If a property has this setup, be cautious and plan ahead.

11. Use Regulated Herbicide to Remove Roots in Sewer Lines

(16:09)
Tree roots are one of the biggest causes of sewer backups. Using a regulated herbicide foam can keep lines clear and save thousands in emergency sewer repairs.

Final Thoughts: Mechanical Knowledge = Higher ROI

Mechanical systems are one of the highest-cost areas in real estate investing—but they don’t have to drain your profits. With the right knowledge and the right experts, you can protect your rentals, reduce maintenance costs, and boost your cash flow.

Special thanks to Austin Matero of AJM Heating & Cooling for sharing these powerful, practical tips that every investor needs to hear.

If you want to learn more, watch the full video here:
“11 Money-Saving Mechanical Secrets for Real Estate Investors”

Detroit Property Taxes: The Truth About Uncapping and What You’ll Really Pay

Detroit Property Taxes: The Truth About Uncapping and What You’ll Really Pay

🔹 What “uncapping” really means under Michigan’s Proposal A
🔹 How to find your SEV (State Equalized Value)
🔹 Using Detroit’s Parcel Viewer and the Michigan Property Tax Estimator
🔹 Why Detroit assessors sometimes base taxes on what you paid
🔹 How to check comparable sales to predict your uncapped taxes

Whether you’re a first-time buyer or a real estate investor flipping Detroit rentals, this video will help you crack the code on how your new property taxes are calculated.

Read More

$10,000 Driveway FAIL? Why You MUST Appeal Your Inspection

$10,000 Driveway FAIL? Why You MUST Appeal Your Inspection

Is your city inspector following the rules?
If you don’t agree with what they cite, did you know you can appeal it — and you’ll probably win?

Today I’m breaking down some real-life examples: a driveway, a roof, and a garage. These stories show why landlords and property owners must know their rights when it comes to inspections.

🚧 The Driveway Dilemma

Let’s start with the driveway.

I was showing a house to a potential buyer and reassured them: “Don’t worry. If you don’t have a Section 8 inspector and you only rent to cash tenants, you can just leave the driveway as is.”

But then I started wondering… was I right?

So I called a city inspector I know (sorry, no names here!) and here’s what I learned:

  • Driveways are NOT on the city’s official 15-point inspection list.

  • However, if a driveway has a trip hazard of 4 inches or more, some inspectors will call it out anyway.

  • At two of the three inspection companies, it’s almost guaranteed to fail.

  • And here’s the kicker: inspectors sometimes hand out business cards for cement contractors right on the spot.

If your inspector is “old school” (usually over 40), they may still be clinging to the old 1,500-point inspection list. And that’s where a $10,000 driveway replacement suddenly becomes your problem — even though it’s not on the official list.

🌳 Trees Over the Roof

Now let’s talk about overgrowth.

On the 15-point list, item #14 states:

“Floor, walls, and ceilings are in sanitary condition, with no evidence of fungus-like substance or sewage.”

But what if your roof has some tree branches hanging over it?

The inspector might argue that overgrowth causes mold in the basement or creates damage. But here’s the truth: unless there’s actual evidence of damage, the branches themselves shouldn’t automatically trigger a fail.

🏚️ The Garage Issue

Next up — garages.

On the 15-point list, item #1 says:

“No major structural defects.”

Simple enough, right? Except the city often pushes inspectors to say “replace the garage” because it makes the city look better.

But replacing isn’t your only option. Depending on the situation, you can repair or even remove the garage. That’s still compliance.

✍️ Why You MUST Appeal

Here’s the most important part:

  • You can’t request a different inspector anymore.

  • But you can appeal to the city when you’re cited for something not on the 15-point list or for something that isn’t actually causing damage.

Frame your case clearly:

  • “The driveway is still operable and safe.”

  • “The branches over the roof are not causing mold or structural problems.”

  • “The garage can be repaired instead of replaced.”

Most of the time, the city would rather keep you satisfied than argue. And more often than not, you’ll win.

🚨 The Bigger Picture

Why is this so important?

Because some inspectors are stuck in the past, clinging to their 1,500-point checklist and doling out business cards to contractors. It’s a system that feels… well, questionable.

By appealing, you don’t just protect your own wallet — you also help push for newer, fairer inspections run by people who actually follow the rules.

Final Thoughts

If you’re a landlord or property owner, don’t just accept every violation at face value. Know the 15-point list. Question what doesn’t belong. And if you’re in the right, appeal, appeal, appeal.

A $10,000 driveway FAIL might sound like the end of the world — but if it’s not on the list, chances are you can beat it.

👉 What do you think? Have you ever fought an inspection and won? Drop your story in the comments — I’d love to hear it.

And if you want to see the actual driveways, roofs, and garages I talk about, check out my YouTube video here: $10,000 Driveway FAIL? Why You MUST Appeal Your Inspection

Emotional Support Animals Tips and Tricks for Landlords


Emotional Support Animals (ESA) and Housing: What Landlords & Tenants Need to Know

Navigating emotional support animals (ESAs) in rental housing can be confusing for both landlords and tenants. Are ESAs the same as pets? Can landlords charge fees? What documentation is required? Let’s break down the rules under the Fair Housing Act (FHA) and related HUD/DOJ guidance.

🐾 What Is an ESA?

An Emotional Support Animal is an animal that provides comfort or emotional support to a person with a disability. Unlike pets, ESAs are considered assistance animals under the FHA. That means they are not subject to pet fees, deposits, or breed/size restrictions (HUD Guidance, 2020).

🚫 Can a Landlord Charge Fees?

No. Landlords cannot charge pet rent, pet deposits, or pet fees for ESAs. However, tenants remain responsible for:

  • Any damage caused by the ESA

  • Following general lease rules (cleanliness, noise, etc.)
    (HUD Guidance, 2020)

📑 What Documentation Can Be Requested?

If the disability or need for the ESA is not obvious, housing providers may request reliable documentation from a licensed healthcare provider. Acceptable documentation includes confirmation that:

  1. The individual has a disability, and

  2. The animal helps alleviate one or more symptoms of that disability.

(Joint HUD/DOJ Statement on Reasonable Accommodations)

⚠️ Important: Online ESA “certificates” or registrations are not considered reliable proof under HUD guidance.

🦮 ESA vs. Service Animal vs. Therapy Dog

  • Service Animals: Trained dogs (and in rare cases, miniature horses) that perform specific tasks for a person with a disability. Protected under both FHA and ADA (ADA.gov Service Animal Guidance).

  • Emotional Support Animals (ESAs): Provide comfort through their presence. Protected under FHA, but not ADA.

  • Therapy Dogs: Visit hospitals, schools, etc. for general comfort. Not covered by FHA or ADA — landlords may treat them as regular pets.

⚖️ Reasonable Accommodations

Under the FHA, landlords must provide “reasonable accommodations” for ESAs unless doing so would:

  • Create an undue financial or administrative burden, or

  • Fundamentally alter the nature of the housing.

(Joint HUD/DOJ Statement on Reasonable Accommodations)

Examples of accommodations:

  • Waiving a “no pets” policy

  • Allowing a larger dog despite breed/weight restrictions

🌎 State-Specific ESA Laws

While federal law sets the baseline, many states add extra protections or penalties for misrepresenting pets as ESAs. For a state-by-state overview, see the Animal Legal & Historical Center’s table of state assistance animal laws.

📝 Key Takeaways for Landlords

  • ESAs are not pets → no pet rent, fees, or deposits allowed

  • You may request reliable documentation if the disability is not obvious

  • Tenants are still responsible for any damage

  • Distinguish carefully between ESA, service animal, and therapy dog

  • Check your state-specific laws in addition to federal FHA rules

Dogs and Insurance

Here is a little-known bulletin that Michigan issued a few years back regarding insurance companies charging more for certain breeds. Here's the long and short of it:  DIFS has issued abBulletin explaining that Michigan’s “Essential Insurance Act does not allow companies to deny, cancel, or non-renew coverage based on the insured’s possession of a particular animal.” According to the bulletin, Michigan law does allow an insurance company to decide not to renew a policy based on the insured’s claim experience with an animal during the three-year period before the renewal. DIFS also interpreted Michigan law as allowing “the imposition of surcharges based on dog breeds if the surcharge is actuarially supported” but stated that the federal Fair Housing Act (FHA) “prohibits the imposition of a service charge for assistance animals.” The FHA defintes assistance animals to include service and emotional support animals.

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.michigan.gov/-/media/Project/Websites/difs/Bulletins/2019/Bulletin_2019-20-INS.pdf?rev=8048749b85484f228b06f9dab0596ad1

✅ By following these guidelines, landlords can protect themselves from legal risk while providing fair housing access to tenants who rely on emotional support animals.


Behind the Scenes: 7 New Legal Realities in Detroit Eviction Court

“Behind the Scenes: 7 New Legal Realities in Detroit Eviction Court” by Monique Burns:

  1. Eviction timelines in Detroit: Attorney Gary Sagatti explained that the eviction process generally includes a 30-day or 7-day notice, followed by two court hearings spaced about two weeks apart, and a final court order (writ) that may take about a week to enforce.

  2. Four types of eviction notices: These include 7-day notices for nonpayment, 30-day notices to terminate tenancy, 24-hour notices for illegal drug activity, and evictions for property damage or health hazards.

  3. Lease clauses for faster evictions: Landlords can include clauses such as “3 late payments within 12 months” or requiring tenant insurance with the landlord listed as an additional insured to justify early lease termination.

  4. Accepting rent after giving notice waives eviction: If a landlord accepts rent after serving a 30-day notice, it generally invalidates the notice and restarts the process.

  5. Default judgments and tenant turnout: Most tenants appear in court for the first hearing, so the optional $15 third mailing service to obtain a default judgment is often unnecessary.

  6. Conditional judgments vs. straight judgments: Conditional dismissals tied to payment plans can lead to complications. A straight judgment may be more efficient and enforceable when tenants default.

  7. Tenant legal representation: All tenants receive free legal representation in eviction court, and these attorneys are generally effective advocates.

  8. Name expungement from court records: Judges may remove a tenant's name from public records only if landlords agree. Monique and Gary suggest landlords should unite in refusing these agreements to maintain transparency.

  9. Detroit blight tickets: Blight tickets replaced criminal misdemeanors for code violations. A future guest speaker will cover how to navigate and negotiate these infractions more effectively.

  10. Ongoing legal support via Zoom: Gary Sagatti hosts a free landlord-tenant Zoom session every Tuesday from 6–8 PM (Meeting ID: 850 012 5562), offering legal advice and peer support.

3 Emerging Trends in Section 8 That Every Landlord Investor Should be Aware of

Here’s a summary of Monique Burns' video “3 Emerging Trends in Section 8 That Every Landlord Investor Should be Aware of” in 10 key bullet points:

  1. Section 8 Funding Gaps: MSHDA (Michigan State Housing Development Authority) hasn't issued new vouchers in over a year due to funding delays, leading to fewer new Section 8 tenants in Detroit.

  2. Declining Tenant Quality: Many available tenants now have eviction histories from the COVID era, making it harder to find reliable renters with clean records.

  3. Rent Pricing by Zip Code: HUD introduced a zip code-based rent system in Detroit, which has caused inconsistencies—some high-demand areas are now assigned below-market rents.

  4. City Housing Commissions Paying More: Housing commissions named after cities (e.g., “Dearborn Housing Commission”) often now offer higher rents than MSHDA or Detroit Housing Commission vouchers.

  5. Unreliable Zip Code Strategy: Trying to invest only in high-paying zip codes is unreliable because actual rent depends on which housing authority issues the tenant’s voucher.

  6. Intense Competition for Tenants: Landlords are offering move-in perks like appliances and waiving security deposits to attract tenants, reflecting fierce competition.

  7. Uncapped Property Taxes: Buyers must be aware that property taxes can triple after purchase due to reassessment—ask for “uncapped” tax estimates, not just current seller rates.

  8. Tenants Switching Houses Last-Minute: Section 8 tenants can switch properties after the first or even second inspection, leaving landlords without notice or compensation.

  9. No Landlord Protection in Cancellations: Housing commissions view the tenant—not the landlord—as the client, so landlords aren’t informed when tenants back out.

  10. Mixed Strategy Suggested: Given the instability, landlords should consider accepting both Section 8 and market-rate tenants to maximize occupancy and income.

Detroit is NOT the problem. It's YOU!

Here’s an AI summary of the video "Detroit Investors: YOU ARE THE PROBLEM! 4 Ways to DO BETTER" by Monique Burns in 10 bullet points:

  1. The Problem is Not Detroit: Monique highlights that many investors blame Detroit for their issues, but the real problem is poor decision-making and lack of diligence on the investor’s part.

  2. Know the Numbers: Investors must understand the true costs and realistic rental income in Detroit. For a buy-and-hold, a fully renovated three-bedroom house should cost around $90,000, with rents typically around $1,200/month. $1,200 is at the low end, but it’s a safe number to use. Taxes are around $1,500-$,2000/year. Insurance is around $900/year. Property management is around 10-12% of rent collected/month.

  3. Beware of Overpaying: Some investors overpay for houses with no potential for appreciation, leading to poor returns. They assume they will get higher rent in a more expensive neighborhood. This isn’t necessarily true in Detroit. They end up with more renovation costs, more tenants, more drama.

  4. References Matter: Always check references when hiring property management companies or contractors. Look for both positive and negative feedback on past performance.

  5. Proper Turnover Management: Efficient property management during tenant turnover is crucial. Investors should verify that the property manager handles turnovers on time and within budget.

  6. Inspect Renovation Work: Before hiring a contractor, inspect previous work to ensure it meets the standards needed for Section 8 tenants. Talk to past clients about the contractor’s performance.

  7. Preview Listings: Before listing a rental property, ensure it is presented well—good lighting, multiple photos, and cleanliness matter. Poor listings can lead to vacancies. Tenants look at photos and they do not read the descriptions. The photos must be sharp and bright.

  8. Avoid Unrealistic Rent Expectations: Don’t expect excessive rent amounts. If a property manager promises higher rents, it might mean the Section 8 tenant has to contribute a large portion, leading to collection issues.

  9. Tenant Screening: Always inspect how a potential Section 8 tenant is living at their current rental. Look for red flags like damage to property or overcrowding. This step is vital to avoid problematic tenants.

  10. Property Condition for Section 8: For a successful Section 8 rental, ensure the house is in excellent condition—fresh paint, new carpet, and appliances can make your property stand out to potential tenants. If your property is nicer than your competition, it should take up to a month to find a tenant.

Current Properties for Sale

9150-9152 Asbury Park - Two family side-by-side

Detroit, MI 48228

1718 Square feet

Built 1952

Sale Price:  $138,000

Rents:  $950 x 2 = $1,900

12% PM Fees:  $2,736

Insurance Estimate:  $1,200

2025 Uncapped Taxes:  $3,171

Income: $22,800

Total Expenses: $7,107

Cash Flow:  $15,693

ROI:  11.4%

18902 & 18906 Morang - Two family side-by-side

Detroit, MI 48205

1900 Square Feet

Built 1952

Sale Price:  $138,000

Rents:  $950 x 2 = $1,900

12% PM Fees:  $2,736

Insurance Estimate:  $1,200

2025 Uncapped Taxes:  $1,901

Income: $22,800

Total Expenses: $5,837

Cash Flow:  $16,693

ROI:  12.2%

Law: Must Not Say "I do not accept Section 8," and pot smoking is illegal

At the same time the Section 8 source of income law was signed in Michigan, I learned there is another law that voucher holders cannot smoke marijuana, medical or otherwise, in federally subsidized housing. If a Section 8 inspector finds paraphernalia or grow equipment on the property, the tenant risks losing their voucher. So for the landlords who don’t want a Section 8 tenant, I’m wondering if they can deny the applicant based on the fact they stink like pot so that tenant is not a good bet at being a long-term tenant. I don’t know! I’m not a lawyer and I don’t work for Fair Housing.

Source of Income Law: SB0205

Link here to see the law.

It’s important to know that this law is based on discriminating against the source of income. Landlords cannot tell tenants that their subsidy from Section 8 cannot be counted toward the landlord’s income requirement.

I foresee landlords denying tenants on other aspects that are not a protected class.

  • The landlord may not accept making the repairs a Section 8 inspector requests.

  • The landlord may need first month’s rent on move-in day. That is not something Section 8 will provide.

  • The landlord may need to know the exact amount that is subsidized. In Detroit we are not told that exact number until after the house passes the inspection. I think this is ridiculous and a landlord doesn’t stand a chance with this one. Whatever Section 8 finds the tenant can afford is better than any background check we are able to do.

  • The landlord may require the tenant to move in within a certain amount of time after acceptance. Section 8 can be very unpredictable when they do inspections.

  • A landlord may refuse to sign the Section 8 HAP contract. Without signing it, the landlord will never receive the subsidy portion of rent from Section 8.

  • The landlord may tell the applicant, “Yes, I accept your Section 8 as a source of income, but being a federally subsidized property, I will report any Schedule 1 substance usage I find at my property including marijuana.”

I’m sure there are other ways landlords are going to refuse Section 8 tenants anyway. The landlord in Michigan can no longer state, “I don’t accept Section 8.” I can see landlords saying, “Yes, I accept your Section 8 source of income, but…”.

The landlord may have a credit score requirement that most people on Section 8 do not have. I have heard at a Fair Housing class that Fair Housing feels using a flat credit score is discriminatory against people who have had a rougher time; such as people with addictions, even alcoholism. I don’t know if they’ve made it a law or they are trying to encourage landlords to enforce equity.

I just know that to avoid a Fair Housing violation, we have to treat everyone the same. We have to prove that the person we did accept actually has that credit score, could move in on the required date, had the first month’s rent in full, etc.

I wonder if someone will use one of these buts someday and be brought up on a Fair Housing violation anyway. I’m not a lawyer. I don’t know.

I personally wish landlords would give Section 8 applicants a fair chance. I find the best way to know if they will be good tenants is to see how they are living in their current home before they move into my home. And that applies to cash tenants as well. I’ve heard this is illegal in California. But California has all kinds of laws that make no sense!

Fourth Amendment: Can We Refuse an Inspection Without a Warrant?

Link to article about Flint Landlord’s Fight

Marijuana in Federally Subsidized Housing

My initial reaction to seeing what Detroit Housing Commission’s applicants have to sign was, “Well, how do they enforce that?” It’s so obvious to me that they do not. Almost all our rentals reek of marijuana. The DHC’s lobby reeks of it too. Then after I filmed my video (in a cemetary with a view of a pond — I’m tired of my driveway!), I spoke to a past Section 8 director. She said it absolutely is enforced. It’s the inspectors who go in and see the paraphernalia or grow equipment and report it to the housing commission. When I searched on ChatGPT about cases, it said these kind of cases aren’t compiled in a way it could let me know how often it happens.

My thought is if a Section 8 participant is giving the Public Housing Authority (PHA) a hard time, it would be SO EASY to send the inspector in to get proof of marijuana so the PHA could remove that participant. I know the workers there feel for the good participants and I’m sure they know how many other applicants are out there who truly need a voucher.

The past director also told me that landlords can request special inspections. Maybe if we want to get rid of a difficult Section 8 participant we can call for that inspection and specifically state marijuana usage. Then the tenant will leave without knowing we did it to them. No more worrying about vengeful tenants. I will have to dig deeper into that subject. If I get something juicy, you know I’ll make you a video!

Weight Loss Journey

MY HEALTH JOURNEY AND HOW I FOUND AFFORDABLE SEMAGLUTIDE AND TIRZEPITIDE

  • I am walking 5,000-10,000 steps per day.

  • I have a personal trainer once a week.

  • I go to a bodybuilder gym 3-4 more days a week and I lift as heavy as I can.

  • I'm eating 90 grams of protein a day.

  • I use a longevity doctor who focuses on prevention.

    But what started it was Semaglutide (I was too weak and had digestion issues) and now Tirzepitide (the peptide version of Ozempic or Mounjaro). I didn't want to look emaciated, so I followed the above rules.

    I started at a walk-in clinic for the semaglutide, but that got expensive.

    Then I found Transforma Peptides. I order my own peptides and dose myself a nice low dose so I can get all that protein in. I'm spending $150 every two months-ish for Tirzepitde.

    Tirzepitide is anti-inflammatory as well. I can't believe I'm not getting 15 migraines/month anymore and I don't have IBS either. Those were my side effects. Not bad! Never felt better.

    https://www.tranformapeptides.com

    Discount code: MONIQUE10

    **Disclaimer:** I'm not a lawyer or doctor, and the information shared in this video is for informational purposes only. It is not intended to be legal or medical advice. Please consult a qualified attorney or health care provider (longevity doctors are my favorite) for any legal or longevity concerns or questions you may have.

Expectations

I was at an investor meetup last night and a few people struck me as surprised when I told them what it’s like buying, flipping, and managing Detroit rentals. I tend to forget that my expectations are not the same as everyone else’s.

While I take you on a tour of our latest rental, I’ll let you know my four things in Detroit that you should expect. Then I will tell you about the tenant moving into this house and how my story about her shook up the Canadian guy I met last night. He said I must be wired a certain way to deal with that. But I’m not at all wired right to deal with what that was.

First, here are my four things to expect.

  1. Furnaces and hot water heaters get stolen. I go into detail in my course about what we do about this.

  2. Tenants can be hard on houses. A good tenant who moves out will cause a $3,000-$5,000 turnover. A regular tenant is closer to $7,000-$10,000.

  3. Credit scores are not the most important thing when doing a background check because when a tenant is trying to survive, they cannot also work on their credit score.

  4. The most important thing is the home visit. How do they treat their current property?

Before I get into the story, please like and subscribe to help support my channel.

Andrew found tenant. House was a ehhh. So maybe she will be a $5-7K turnover, but we have luck with longterm tenants.

The last video was about the inspection. We ended up needing to put up siding on part of the house before inspection #2 which would have to be after Thanksgiving.

November 30 was a Saturday and we were up north. She calls us December 1 and has nowhere to put her things. We coordinate the key. Should we have done that?

Then she calls again a few days later and says she has nowhere to sleep. Can she just sleep in the house? What would you say?

My point is I don’t like to be responsible for people’s lives. I have more so I must give. Or I would have nothing if I give that way.

Do unto others. Turn the other cheek. Love them more. But what about pearls before swine and love without wisdom? It’s an awful feeling and I never know if I’m choosing correctly.

Historically speaking, I chose correctly but I really don’t know. It all worked out so I will move on.

If you want to invest in Detroit and if you want to affect people’s lives, you’re left with some tough choices. We aren’t a welfare organization but we can also find ways to be kind and be good people.

Should You Charge Your Section 8 Tenants for Repairs?

We do not charge Section 8 tenants or any tenants the first $50-$300 in repairs and we have good reasons!

I shouldn't make a moral judgment whether or not it's actually gouging a tenant. Part of me thinks it is, especially if it's a repair that the house needs that is not even a tenant-caused damage. But if a tenant agrees up front to pay the first $50-$300 in repairs, then how is that wrong? I don't know.

We just don't charge the tenants any part of the repairs because we find that the damage they do in making the repairs isn't the least bit worth it. And trying to collect repair costs in court is not worth the legal fees and all the tracking we would have to do. But I only know DETROIT.

I'm curious how it is for you in other cities. What are your thoughts?

This video was inspired by a post someone made on Facebook about someone else’s Section 8 course. Part of the reason he claims really high ROIs is that he charges tenants the first $300 in repairs. I don’t see this working even if it’s in the lease. From my experience, our tenants have priorities and fixing our house would never be on that list. It’s wonderful when we find tenants who prioritize rent. That’s a win!

If they have to pay for the repair, I don’t see them ever calling the person we tell them to call to do the repair. I could see them calling their handyman uncle to do the repair and then the handyman uncle doing it all wrong. It’s amazing once a tenant has moved out, the “repair” work we’ve seen tenants do on their own. It’s never right. They think it’s right, but it’s simply not right. And we don’t even ask them to pay for the repairs. But they will repair things when they don’t want us in the house for whatever reason, usually because they’re not paying rent.

Storytime: Section 8 Horror Story with Lessons to be Learned!

I found a post in our local Facebook group that I found to be very interesting and full of lessons.

Lesson #1

When an owner receives a move packet and the owner is not familiar with the local housing commissions, it’s a good idea to call the housing commission and ask if the email you were given is their email address.

Lesson #2

Tenants do not port at the beginning of a lease term. Porting means move to another state or county. The tenant has to do at least one year once they are renting a house before Section 8 will allow them to move.

Lesson #3

Caseworkers do not meet landlords at the house. At least not in Detroit ever. Caseworkers do not communicate unless it’s in a formal manner. It seems as though their communication is all cut and paste. They are not personal. They would never say that the keys are on the counter. They may tell you the tenant is porting or the contract is canceled. But they will not add to it that the keys are on the counter.

Lesson #4

A caseworker will never offer legal advice. In this scenario the supposed caseworker advised the owner to dispose of any personal property. Judges and lawyers all have different definitions of what constitutes a vacated property. There seems to be a lot of gray area on this subject. When in doubt, ask your lawyer.

Lesson #5

Never enter your property assuming it’s vacant. Look around before entering to see if it seems someone lives there. Even then, announce yourself as you’re opening the door, “LANDLORD!” Landlord, as in you’re not there with guns for a drug deal or as police.

Lesson #6

If someone has moved into your house without your permission, that is considered trespassing. Even though there is a new squatter law that the police are to remove squatters, for some reason the police were all trained to say, “This is a civil matter.” They will insist you file an eviction, which will take MONTHS for the courts to execute.

Lesson #7

Usually if someone has moved into your house, they did so unwittingly thinking they were renting it from the real landlord. They probably have no money anymore to move. If you don’t want to spend MONTHS evicting them and paying legal fees, offer them enough cash to move. That amount is negotiable. Some people say first month’s rent and security deposit will do it. Other people offer $500 and that’s it.

Lesson #8

Don’t go into renting to Section 8 tenants assuming you know everything. Have the humility to learn.

Section 8 Rental Mastery

Pat's Common Sense Shower Surround Solution Landlords will LOVE!

Here’s a summary of the YouTube video by Monique Burns titled "Shower Wall Hack: Landlords Will Love It!" in 10 bullet points:

1. **Introduction**: Monique Burns shares her excitement about a bathroom renovation, featuring her husband Pat explaining a cost-effective shower surround solution.

2. **Tenant Reaction**: A tenant is thrilled with the bathroom transformation, moving from ugly tiles to a nice new look.

3. **Background**: Monique and her husband buy and renovate distressed properties in Detroit, selling them to investors nationally and internationally.

4. **Call to Action**: Monique invites viewers interested in buying homes or her online course to schedule calls with her.

5. **Bathroom Renovation Challenges**: Pat discusses the limitations of the bathroom layout and budget, leading to creative solutions instead of a full renovation.

6. **DIY Approach**: They opted to paint existing tiles and use solid vinyl plastic sheets as an affordable shower surround alternative.

7. **Installation Process**: Pat explains how they adhered the vinyl panels to the walls with full spread glue and capped them with trim.

8. **Cost-Effectiveness**: The vinyl panels are inexpensive (about $35 each), making them a practical choice for budget renovations.

9. **Additional Improvements**: Besides the shower surround, they reglazed the tub, replaced fixtures, and installed luxury vinyl plank flooring.

10. **Future Plans**: Pat mentions that while this solution is effective, a full gut renovation is needed for the bathroom in the future due to its poor layout.

The New Taboo: "Sorry, I don't accept Section 8."

Source of Income Discrimination

Does your state or your municipality have a Source of Income discrimination law? You’d better find out! The governor of the state of Michigan is about to sign the bill here. I’me going to break it down in this video. What does it mean? What if you violate it? What’s really going to happen?

What We Cannot Do

Link to New Ruling

  1. Denying or terminating a tenancy.

  2. Denying them a rental unit or making it unavailable to them when they would otherwise (i.e., if not for their source of income) be eligible to rent it.

  3. Attempting to discourage the rental or lease of a rental unit to them.

  4. Falsely representing to them that a rental unit is not available for inspection, rental, or lease; knowingly failing to bring a rental listing to their attention; or refusing to allow them to inspect a rental unit.

  5. Making a distinction or restriction against them in the price, terms, fees, or privileges related to the rental, lease, or occupancy of a rental unit—including, House Fiscal Agency Page 1 of 6 separately and specifically, doing so on the basis of their use of emergency rental assistance.

  6. Making a distinction or restriction against them in the provision of facilities or services related to the rental, lease, or occupancy of a rental unit.

  7. If the landlord requires tenants to have a certain threshold level of income, excluding any income in the form of a rent voucher or subsidy (but not emergency rental assistance) in calculating whether those criteria are met.

What is Source of Income

Housing assistance, housing choice vouchers provided under 42 USC 1437f, public assistance, veterans’ benefits, Social Security, supplemental security income or other retirement programs, and other programs administered by any federal, state, local, or nonprofit entity.

What is NOT Source of Income

  1. Income the prospective tenant cannot prove. I woud think this includes self-employed people and maybe people doing illegal business.

  2. Housing assistance that is not approved by the appropriate agency within 30 days after the landlord provides all information required as a condition of the agency’s approval, including evidence that all repairs required before occupancy have been completed.

This last one would mean that once I have turned in my Section 8 application, the housing commission has to get through the inspection and I have to pass it within 30 days.

What happens if we violate this?

Damages would mean actual damages for injury or loss caused by each violation, or up to three times the monthly rent for the rental unit or units at issue, whichever is less, together with court costs and reasonable attorney fees.

What’s Really Going to Happen?

I don’t believe in discriminating against people with sources of income from the government. I think a lot of landlords are going to look at this and say okay to renting to Section 8 but the tenant has to come up with first month’s rent upon move in. That’s what the landlord does with everyone else anyway. But would that be discriminating against source of income? Or the landlord could refuse to sign a HAP contract. There’s some wacky things in there we have to sign if we choose to rent to someone on Section 8. For instance, if my house is in abatement because I failed two inspections and the damages were all tenant caused damages and Section 8 stops paying me, can I charge the tenant the missing Section 8 rent? No! Credit score. Home visit.

Section 8 Reform: Small Area Fair Market Rents. Good or Bad?

What is a SAFMR?

This is a quote from one of HUD’s memos explaining the breakdown:

A family with a voucher pays about 30 percent of its income for rent and utilities, and the voucher covers the remainder up to a payment standard set by the state or local housing agency.  The payment standard generally must be within 10 percent of the FMR, although agencies may set higher or lower standards if they meet certain criteria and get HUD approval.[1]  Families may rent reasonably priced units above the payment standard, but they must pay the extra rent themselves, on top of the 30 percent of their income they would otherwise pay.[2]

Why Landlords Deserve Premium Rents from Section 8 Tenants

I buy distressed properties in Detroit, renovate them, and rent them to Section 8 voucher holders for ABOVE fair market rent. I feel I should be paid extra because I am asked to do more than a regular landlord:

  • Fill out a lot of paperwork once I find the tenant.

  • Keep my house vacant for 1-3 months longer than it would take to place a cash paying tenant

  • Endure yearly inspections that usually require me to front the expenses of tenant caused damages

  • Endure unfair inspections.

HUD is saying I’m not being fair

HUD does not want me to charge higher rent than fair market rent. They feel they are being ripped off by me.

HUD also feels that the amount of rent HUD is willing to pay to landlords is not enough for tenants to move to neighborhoods with better schools and better opportunities to leave the circle of poverty. So HUD is going to offer to pay extra rent to get tenants the ability to move out of Detroit and into the suburbs. At the same time, HUD is greatly reducing the amount of rent it will pay to Detroit landlords.

Detroit is on the chopping block

Detroit has already rolled out it’s new SAFMRs. The housing commissions are welcome to implement it now (which it seems they are doing), but they have to officially implement it in January of 2025. HUD is determing rent based on zip codes. I really don’t like this because a zip code does not define the quality of a neighborhood. Detroit’s quality is very much block by block. There are excellent desirable blocks in every zip code as there are scary areas no one should be living in in every zip code in Detroit.

Note: We are all set with our tenants already paying the top amount (our rents won’t be reduced), but any new tenants we will have to accept sometimes $200 less per month depending on the zip code.

Good Luck Moving out of Detroit!

My personal observation is that when tenants move out of Detroit, they are met with a landlord or property manager who is convinced Section 8 tenants destroy houses. Or the landlord or property manager does not have enough experience with Section 8 to know that we sadly sometimes have to take tenants to court to incentivize their housing commission to process their income adjustments or rental increases. A suburb landlord will see a court action and not know to ask the prior landlord if it was because the tenant was bad or it was a tool to get a slow housing commission to do their job.

Suburb landlords and property managers are usually also strict about credit scores. I’m used to Section 8 tenants who have been in “survival mode” and have not had the privilege of even thinking about improving their credit scores. I do not look at credit scores. I look to see how they live so I know if that particular person is one who destroys houses.

Also if a tenant moves into the suburbs where rents are higher, that means the security deposit is also higher. It’s hard to come up with that much cash to move.

What is the new rent?

Here is a link to the new zip code rental amounts or SAFMRs: LINK. Take each zip code and minus from it the utility allowance. I am using the utility allowance chart fo Wayne County detached single family homes. Here is a link to it under Current MSHDA PHA Utility Allowances : LINK If you want to see the memo that inspired the blog and video, here it is: LINK.

Below are amounts for any of my houses that I would use from the utility chart. I added together the following columns: Heating natural gas, cooking natural gas, hot water natural gas, other electric, water, sewer, natural gas service charge, electric service charge, range, refrigerator. The trash comes out of our taxes so I didn’t have to include that. Most of our houses do not have air conditioning so I didn’t include that number. What I included is the utilities the tenant has to pay; gas, electric, water, sewer. The tenant also has to provide their own refrigerators and stoves in my properties (and most Detroit properties).

Utility Allowances: A two-bedroom is $259. A three bedroom is $349. A four bedroom is $438.

48205 is a place where we invest a lot so I will use that zip code for this example. A two-bedroom in 48205 is $1,250 less $259 = $991. A three-bedroom is $1,530 less $349 = $1,181. A four-bedroom is $1,660 less $438 = $1,222. But each housing commission has a 20% discretion in their policy to pay us more. We just know they won’t pay us LESS than these amounts.

If I add 20% to each rental amount, I could get for a two-bedroom $1,189, a three bedroom I could get $1,416, a four-bedroom I could get $1,466. Before the SAFMRs, I was getting more! A couple hundred more.

Beware of Relying on that Supposed 20% Discretion

There are a multitude of factors that affect the amount of rent we really can get. Each housing commission is run differently. Each housing commission has its own separate funding besides from HUD, from what I understand. And each housing commission has its own policies.

I was able to ask one of the housing commission directors about these new SAFMRs. He is trying to get the housing commissions to work together on developing their policies so the housing commissions rents they will allow don’t vary widely. We don’t know yet how much lower our rents are going to be. But it sure seems they will be because we’re already seeing lower than usual rents being accepted by the housing commissions.

My Guess How This Will Play Out

If we do not get a premium for renting to Section 8 tenants, it will be far less desirable to rent to them.

Just because HUD’s goal is to get tenants to move out of the city, it doesn’t mean they are going to do that or that tenants even want to do that. Section 8 tenants are usually single mothers who rely on their families to help them. My best tenants usually rent because my property is near their relatives.

And there is the whole prejudice barrier that suburb landlords have against Section 8 tenants. I’m involved in my local REIA group that meets outside of Detroit in Oakland County. I can tell my peers until I’m blue in the face that their prejudice is on false notions, but they do not believe me. Even with the new law being passed in Michigan where we landlords cannot discriminate against source of income, all the landlords are good and ready how they will bypass that. They will use credit scores and income. They will say they need the full rent on move-in day. The State can’t make us wait up to three months before we see the first rent in our bank account. So why would we rent to Section 8 tenants if we don’t want to?

My houses are all in Detroit. I prefer Section 8 but it comes with a cost to me. I have to wait an extra month of not collecting rent while I get through usually two inspections. It’s really hard to pass their inspections on the first try. It’s rare for even the best landlord. There’s one-three month’s lost rent on a vacant house. Then I have to pay my taxes, insurance, and mortgage out of my pocket for the first one to three months until rent hits my account. Then every year I have to pass another inspection and fix things typically a tenant damaged that I wouldn’t normally fix until after that tenant moved out. Why fix something for them to damage it again? And when a tenant puts in their notice to vacate, I know what day Section 8 will stop making payments to me. But that doesn’t mean the tenant will move. I’m often stuck with a tenant in my house who is not paying a dime of rent because all her funds are going to fund their move. The tenant doesn’t make enough money for me to collect that missing rent through the courts. That has been a significant price I’ve paid.

I’m waiting to see how much “discretion” or rent I’ll actually be allowed to charge before I decide if I’m renting to Section 8 tenants or not. If there isn’t a premium, I doubt I will favor them over cash tenants anymore.

Although I do like those monthly reliable Sectoin 8 rental deposits. I do like that I’m only chasing rents on the tenant’s portion which is usually around 25% of the full rental amount. And I do like that Section 8 tenants tend to want to abide by their lease so they don’t lose their voucher. But if I’m not also paid a premium for those former things, it’s hard to say.

If other landlords feel as I do, it could become really hard for Section 8 tenants to find houses. Tenants are only allowed a limited time to find a place to live. After that, the tenant loses their voucher and the tenant is faced with homelessness. I thought HUD was there to prevent homelessness.

I’m NOT a fan of basing rents on zip codes. It’s too bad the “discretion” isn’t based on who the good landlords are and matching them up to the good tenants on the good blocks. But can you imagine the Fair Housing fiasco that would cause?

I’m eager to see how this plays out. Meanwhile, I’m still favoring Section 8 tenants because the rents are still at a premium, just not as much as it was.

The Truth About Investing in Detroit: 3 Misconceptions Explained

I talk to a lot of potential Detroit investors and these are the three common myths we discuss. They're okay with the first one and the second one, but the third one is the hardest one to get through to them. Investors are SMART people who have proudly done their research. They just don't know what it is that they don't know. I don't have nine hours on the phone to educate them so I made a course. I made the course that could have saved ME countless thousands if only I had it in the beginning.

Watching the Know-It-All Investors is like watching a horror movie. "I told you not to go in that room!" But they go right toward danger.

CLARIFICATION: At the end of the video I told about 3 investors.

Investor #1 bought 12 doors from us in 2017-2018. He also has rental investments all over the country. When we stopped managing his houses, he lost money because he does NOT have the "master's degree" in managing his property manager. Nor did he have the time to follow up with his property manager weekly, which would have saved him a lot of money. Prices have appreciated so much though that he asked me to sell his properties. That's why I was talking with him recently.

Investor #2 is local and has properties in Detroit and the suburbs of Detroit. I was commiserating with him about Investor #3.

Investor #3 is someone who found me on Youtube but is now working with an agent. This person also has properties all over the country so he thinks Detroit will be similar and he was not interested in my course. This happens more often than not when I try to warn people that Detroit takes some finesse and they shouldn't assume the property manager will take care of them. It frustrates me to watch people get hurt in Detroit and make a bad name for Detroit when really they could have avoided a lot of pain if they had the humility to take my course.

If you want to discuss buying a Detroit turnkey rental, please go to my calendar here and book a call: https://calendly.com/section8rentalmastery/investing

If you want to learn more about our online course, Section 8 Rental Mastery, book a call here: https://calendly.com/section8rentalmastery/course

Link to Course: Section 8 Rental Mastery https://www.section8rentalmastery.com/pl/2148292561 Exclusive Buyer List https://www.GreatDayPropertyManagement.com/exclusive-buyer-list We only sell a couple of houses a month. This is step 1 to join our waiting list. Cash buyers get our newly renovated turnkeys. If you're using a loan, I can sell you our other houses that we renovated between 2016 and 2020 that are now for sale again. Buyers typically sell them because their property manager has been too difficult. Or I can refer you to my best Detroit agent.

Free Offer: Section 8 Prescreening Questionnaire https://www.section8rentalmastery.com/pl/2148209883

For Sale Page: https://www.GreatDayPropertyManagement.com/for-sale I don't always update this page because my properties have a buyer sometimes before they're done and I can list them on this page. You can email me too at Monique@greatdaypm.com

Exclusive Buyer List: https://www.GreatDayPropertyManagement.com/exclusive-buyer-list We only sell a couple of houses a month. This is step 1 to join our waiting list.

New Detroit Rental Inspection Rules You Need to Know

New Detroit Rental Inspection Rules You Need to Know

The City of Detroit is having a hearing about the City Council's new proposal. The hearing date will be announced in September. Detroit has some of the toughest rental regulations in the country. We are required to do a Lead Inspection Risk Assessment (LIRA) that costs us $450-$500. We also need to have a $195 city inspection. If we have Section 8, we bypass those two tests and send in our passed inspection form and get a Certificate of Compliance for a processing fee of something like $73. The new fee structure being proposed is $150/year.

Our certifications are good for three years and will remain good for three years if the proposal passes. So a non Section 8 house costs $500 (lead) + $195 (city test) + $73 (processing) = $768 and it's good for 3 years or you could say it's $256/year.

For a Section 8 house my cost is $73 for three years or $24/year. Detroit is trying to get more of us in compliance so they are changing up how they are doing it but it really doesn't make sense. For instance, they are saying no more LIRA test. They will reduce it to a dust swipe test. That means they take a certain kind of wipe and wipe around windows that cause lead dust. They would take soil samples outside. They send those tubes in to be tested. That all costs MORE money. Yet, they want to take the whole test price down from $195 for three years to $150 per year. Even if the new yearly fee will cover the extra expenses, there are also the expenses of the inspectors being certified to do the wipe tests. And doing the wipe tests without the rest of the LIRA tests has been tried in Grand Rapids and Flint only to be stopped later because one test isn't even good without the other.

Read More

Part 2: The Truth About Investing In Detroit Rentals: 5 Things that can GO WRONG!

Here’s a summary of the video by Monique Burns titled *PART 2: The Truth About Investing in Detroit Rentals: 5 MORE Things That Can GO WRONG!*:

1. **Contractor Issues**: Contractors in Detroit can be unreliable or unqualified, often providing misleading photos of their work. To mitigate this, consider hiring a reputable contractor to inspect others' work or buying fully renovated properties.

2. **Water Department Complications**: Mismanagement with the water department can be costly. It's essential to stay updated with their regulations and ensure proper handling of water bills, possibly using an online course for guidance.

3. **Break-Ins**: Vacant houses in Detroit are prone to break-ins, with common thefts including furnaces and new fixtures. Employing house sitters can help, though it's not a perfect solution. Effective security measures are crucial.

4. **Blight Tickets**: Investors often face blight tickets from the city, which can lead to additional taxes or legal issues. Avoid purchasing properties with existing blight tickets and learn how to manage or contest them.

5. **High Taxes**: Detroit has relatively high property taxes compared to house prices. Despite this, high rental incomes can offer a good return on investment, though appealing taxes has become more challenging.

6. **Reputable Contractor Search**: If you’re out of state, use Facebook groups and referrals to find trusted contractors and verify their work quality.

7. **Pre-Renovated Property**: Buying homes that are already fully renovated can avoid contractor issues and ensure the property meets quality standards.

8. **Security Measures**: Beyond house sitters, other preventive strategies should be employed to protect vacant properties from theft and vandalism.

9. **Course for Investors**: Monique offers an online course detailing how to handle issues with the water department and other aspects of Detroit real estate investing.

10. **Investing Strategy**: Despite the challenges, Detroit’s high rental yields can still make investing in properties profitable, especially if you manage taxes and maintenance effectively.

Part 1: 5 The Truth About Investing in Detroit Rentals: 5 Things that can GO WRONG!

They say high risk means high reward. But you can really cut down the risks in Detroit if you learn what they are and find ways to avoid them.

  1. Consider who is advising you and know their level of expertise.

  2. Choose the right neighborhood. It takes a true local to advise you on this. It’s not possible from reading blogs, watching videos, or searching Google.

  3. The renovation. It’s hard to find a crew who can renovate well. Allow your project manager to do the management of the crew.

  4. When choosing a property manager, get referrals from clients who have been through turnovers.

  5. When choosing tenants, it’s more of an art than a checklist.

Exploring Detroit's Smelly Dump: A Stinky Adventure

From the above title to the AI summary below, I’m completely amused by using AI. For the title, I asked AI to give me a good YouTube title for a video giving it these words: “Detroit dump tour stinky smelly big tractors.” Here is another AI title I was given: A Day in the Life of a Detroit Dump Tour Guide. Sounds like a great tour!

And here is my own writeup about the dump:

Find out where the trash goes in Detroit. We had to unload our trailer at the dump in Detroit after renovating a house and I was a ride-along for the first time. What fun to see all those tractors bulldozing the trash away. The big tractors are pushing it onto a conveyor belt that I couldn't see. It then gets loaded into more trucks that take it away to a landfill somewhere. Somewhere smelly!

I never left the inside of our pickup truck, but I could smell the dump coming out of my pores and soaked into my hair.

We made the mistake of running an errand somewhere right after. The woman waiting on us recoiled and said, "Oh, you've been working somewhere?" I laughed because she could smell the dump on us. DISGUSTING!

I showered hard when I got home. Lots of suds and shampoo. But what FUN! I wish I knew how to work a big tractor. I betcha those people come home from work very happy every day. Smelly, but happy.

AI SUMMARY OF VIDEO

This summary reads like a children’s picture book.

Here's a summary of the YouTube video transcript titled "Detroit Dump: Big Trucks, Big Tractors, and BIG STINK!" by Monique Burns:

1. Monique is at a dump in Detroit where she sees huge trucks and a tractor.

2. Her husband is emptying their trailer into a pit behind their pickup truck.

3. She admires the tractor moving and compacting the trash.

4. Monique mentions needing a specific vest to get out of the car due to safety regulations.

5. She marvels at the process of trash being smashed down into the pit by large tractors.

6. Monique expresses amusement at the idea of operating such a tractor.

7. She notices various trucks dumping trash at the site.

8. Monique comments on the volume of trash and wonders if workers ever salvage items like a basketball she sees.

9. She explains the process of weighing in with the trash and then weighing out to determine the amount charged.

10. Monique concludes by sharing they disposed of over 1,000 lbs of trash during their visit.

This summary captures the main points of Monique Burns' experience at the Detroit dump as described in the transcript.