Getting Started

The deal to purchase 5053 Commonwealth was brought to me by Jennifer Reynolds, an associate broker at O'Connor Realty in Corktown. Jennifer was a long term tenant of mine at 5030 Commonwealth and she knew I would be interested in re-habbing a property that is across the street from 4 of my properties. 5053 had been neglected for some time as can be seen from the attached photos. Every dollar spent at 5053 will add value not only to my properties but to all the properties in Woodbridge. The selling price was $30,000.00. The closing was August 21,2009. I thought seriously of walking away from the deal as I was becoming more and more aware of the deteriorating value of Detroit property. Every morning I received e-mails from brokers trying to entice me to purchase income property in Detroit. Two families in better shape than 5053 were being offered for 1K to 15K. I decided that the difference was the old adage location,location,location. Woodbridge has unique value because of its proximity to WSU,Detroit Cultural center and downtown Detroit.What good is a great buy in the east side of Detroit if you can't find trustworthy renters. I have a 25 yr. history of finding quality renters in the Woodbridge area. My goal is to create a beautiful property inside and out that will attract quality renters for the long term. I am going to keep it 4 units because I have noticed an increased demand for affordable one person units. Students start out wanting roomates to share expenses and that runs its course when the mess is greater than the savings on expenses.Everyone gets tired of the mess of others. I am going to start out paying all the utilities with the goal of netting after utilities $1,600.00 to $1,800.00 per month. I project my re-hab costs to be between $40,000.00 to $60,000.00. We will see.

1st fl. 1S
Two room apt. We are going to flip it so the kitchen and living area is in the front.The back will be the bedroom with a closet and attached bath. We will tear out the kitchen sink,cabinets and pantry. We will take out the tub on the east wall and replace it with a 5 foot tub and shower surround on the north wall. The toilet will go where the tub is.

1st fl. 1N
Two room apt. No changes. Take out kitchen sink. Put in new cabinets. Bathroom stay the same.

2nd fl.

3 bedroom apt with kitchen and bath. The downfall is no common living space except for small kitchen. Of course the front porch and backyard is usable space and we will make them very livable.

3rd fl.

1 bed. apt. We will move the kitchen door to the South to make room for our kitchen counter. We will build a wall behind the tub to put a shower on.

I will find out tomorrow if we can run ducts up to the third fl. kitchen and bath so we can get rid of the radiators. Will have to get a more powerful furnace.

Trevor and Zach have provided floor plans.Eric Moore of Grosse Pointe Glass Block has started to put the glass block in the basement windows. 4 more windows to go.

Waiting for prices on steel doors for the back of the house.

Brian has started to tear out the carpet and tiles.

Tomorrow meet with mason-Francisco Ramos for front porch and sidewalk. Will ask for price to re-do porch. I am falling in love with the bldg. Always do. I like to break the rules.

Tommorrow take kitchen and bath plans to home depot.

The deal is consumated the birthing has begun. Painful and exciting.