I just went and looked at a house today in northern Michigan. Its in a kinda dead small town and only needs everything. Real Estate Agent figures it might be worth 100 large all finished (if ya could sell it).
It was built around 1900 and is currently set up as a three unit rental.
So, why did I drive nine hours round trip to look at it?
Its going for 10k.
So I repeat, would’ya?
My biggest question to myself is what in the world am I gonna do with it when I finish it? Its by no means a vacation property and i’m not sure it would sell anytime soon.
Replies
Where's it located? Anywhere near Cadillac or Grayling. If it's close to snowmobiling, skiing, you might just have a bargain.
Carl
Its in Onaway. Northeast Michigan.
Isn't Onaway in the Upper Penninsula? If so, it isn't as acessible--less people seem to go up there. If it's just north of Tawas, that may be okay.
Onaway is in Presque Isle county(think rogers city). Its on the west side of the county about 20 miles from I-75(exit 310).
Edited 10/4/2006 3:48 pm ET by MSA1
Spent six weeks in millersburg in 81 dismantleing a block plant, Loved the area.
MikeInsert initially amusing but ultimately annoying catch phrase here.
Yeah, its a great area. My family really likes the area. We originally spent a week at Nettie Bay Lodge which is about 20 miles from Onaway.
Have you ever been to Rogers City? Talk about a nice town, Lake Huron is spectacular up there.
Def been to Rogers City. Huron is awesome up there. There used to be a limestone quarry ithink in Rogers City that was I think the largest in the world.
MikeInsert initially amusing but ultimately annoying catch phrase here.
Its still there. I spoke with the economic development board up there and they expect it to last another 100 years. There's alot of limestone up there.
As I recall (haven't been there in 18 yrs) there's a spot where you go over a bridge and you're looking down at the top of utility poles. This being at the quarry/pit.
Mike
Insert initially amusing but ultimately annoying catch phrase here.
Yeah, i've been there. Its like looking out over the grand canyon. The place goes on forever.
That place looks like a good rental, as is. Two units rather than three. (One less check to chase.)
If you are looking to restore it, different story, but I would be looking at the local papers to see what rentals are going for.
I would also be talking to brokers in the area and I would want to talk to former owners of this unit. IIRC, the bank owns it now. Why? Was it the site of a toxic dump or is it just bad luck for the former owner. The house itself does not look like it was one of a kind. What do others on the block sell/rent for?
Do some homework, but I like the place.
Don K.
EJG Homes Renovations - New Construction - Rentals
Resto is out, i'd lose my arse. The house kind of is one of a kind on its street. I chased demographics on line last night. Pop is about 1000, median rent is 290-320.
Location isnt bad. Its a block from main street in town. I think it was lost just because it was really run down. there is a medium size manufacturing plant in town so there is some industry there.
I have bought 3 houses for 10k. None of them looked near that good. I would buy that in a minute. But..........3 hours away. Long drive to show it, long drive to evict if needed, long drive to work on it, winter is coming. I don't think I would do it. But if you do I vote making 2 units. I also shy away from rentals that are remote. Either they are rented by someone who loves it there or you can't find anyone. DanT
I've been thinking about the distance. I have no problem spending 1000 in gas to turn potentially 10000 in rent. Also I have someone up there that i've known for awhile that could take care of the "little things" that come up. He's my brother-in-laws brother and he does this kind of work, he told me no problem just let him know. Obviously an arrangement will have to be worked out but I think its doable.
A 3 rental unit for 10?
More and more people are liking nowheresvilles.
We need pics and we need them now.
And a detailed analysis of the foundation and roof.
be northern Michigan has cold snow.
You could sell it to blue so he could tear it down and build a housing development.
"When we build, let us think that we build forever. Let it not be for present delight nor for present use alone." --John Ruskin
Andrew Clifford of Clifford Renovations, who serves as a steward of our history for future generations
We can imagine something that only exists in our heads, in a form that has no measurable, tangible reality, and make it actually occur in the real world. Where there was nothing, now there is something.
Forrest - makin' magic every day
Edited 10/3/2006 8:51 pm ET by rez
No room for develoment. It sits on a 70x160 lot. Foundation really isnt too bad, roofs hit (and its a gambrel). Like I said in between the roof and foundation it really needs a going through. As a single residence it would be a mansion. As a rental it may flow about $900/mo if you rent all three units.
Sorry, have the shots but i'm too dumb to figure out how to post them.
Heck
offer 5k. LOL or 2.5k...throw in a used car (running)
I'd do it for 900/mo.
First rental I bought was for about 20k. Rougher part of town. 20 years later it's worth 100k. But I sold it after putting a new roof and kitchen in. Not the landlord type. now i use a management company
edit: now I'm kickin myself. Just looked it up on Zillow. 205k. Darn!
Edited 10/3/2006 10:27 pm ET by Scrapr
My concern with the town is that, it isnt getting bigger anytime soon. Even to keep it as a three unit, it's gonna take some work (and money).
BTW its bank owned and down from 37000. I know there is one offer in on it right now which i've been told is "just too low".
Edited 10/3/2006 10:45 pm ET by MSA1
MSA-
If I could get a 3 family for 10K, I'd probably jump on it. But, if the place needed lots of work, and I was 4 hours away, different story.
What would it cost to rebuild it? How much can you do your self? Do you have what it takes?
Are you a landlord? Do you want it for a flip?
As one old radio guy used to say, "Don't fall in love with a house, fall in love with the numbers."
Don K.
EJG Homes Renovations - New Construction - Rentals
The four hours doesnt really bother me. What would repairs cost? To the nines, 100 large. Get the place up and running again, probably 50 large.
Are you a landlord? Do you want it for a flip?
Thats what I was getting at, not sure what i'd do with the place. I think it would be a wash as a flip, plus the 300 years it would take to sell it around here.
It would be a fun project. I like doing full reno's.
I think if I brought my helper in, he'd run away screaming. :>)
Believe me, i'm not in love with this house, just the price. I'm also not in love with the one i'm buying in Ferndale, but those numbers look considerably better.
Edited 10/3/2006 11:17 pm ET by MSA1
Edited 10/3/2006 11:29 pm ET by MSA1
So lets say you have 60k in it to get it rented. 900 a month rent will bring in almost 11k a year. Thats about an 18 percent return on your money. You will have taxes and insurance to deal with but those numbers would work for me.
I need to know the area just a little better before I could bank on full occupancy. You are right though, when you look at it that way it would be a good return.
From the pics I would seriously consider buying it. If the utilities are seperated into the three units that is a big plus. If not that could either cost you or bgecome a problem. Might rent better as a duplex, depends on the market. I have a lot of people looking for small efficiency type units though. Probably not any zoneing issues if its out of the city, but you might want to check.
You know, the second floor would lay out better as one unit. Good thinking. Thanks
The fact the bank owns it now oughta tell ya somebody else couldn't make it pay. So what makes you think you could?
(Not being mean; just playing devil's advocate.)
Not a penny over $7500 and make the bank pay for the closing.
Dinosaur
How now, Mighty Sauron, that thou art not broughtlow by this? For thine evil pales before that whichfoolish men call Justice....
I dont think you're being mean. I am leaning towards no simply on location (location not distance). I just couldnt resist checking out a 10k house.
I just couldnt resist checking out a 10k house.
My folks paid 10 grand for their house. In 1952.
Sold in 1964 for 29k. Wonder what it's worth now...?Dinosaur
How now, Mighty Sauron, that thou art not broughtlow by this? For thine evil pales before that whichfoolish men call Justice....
email them to me and I'll post them here.
"When we build, let us think that we build forever. Let it not be for present delight nor for present use alone." --John RuskinAndrew Clifford of Clifford Renovations, who serves as a steward of our history for future generationsWe can imagine something that only exists in our heads, in a form that has no measurable, tangible reality, and make it actually occur in the real world. Where there was nothing, now there is something.Forrest - makin' magic every day
Nothings easy sometimes. I sent you an e-mail but no pics yet. I'll get them to you.
View Image
You've got three rental units there? What size are they? Looks like a single family house.
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
The place is about 2000 sq ft. First floor is the largest and the second floor is divided into two smaller units.
Go buy it.
For pic posting data you can click here:
http://forums.taunton.com/tp-breaktime/messages?msg=24441.75
cheers
Edited 10/4/2006 4:54 pm ET by rez
Care to expand on that? Shoot me an e-mail.
Thanks
Just got a call from the realtor........$9500.
We close by the end of the month.
Bravo!
be now go buy a new case of gloves:o)
"When we build, let us think that we build forever. Let it not be for present delight nor for present use alone." --John Ruskin Laminate is just a picture of hardwood printed on countertop for your floor.We can imagine something that only exists in our heads, in a form that has no measurable, tangible reality, and make it actually occur in the real world. Where there was nothing, now there is something.Forrest - makin' magic every day
Now you'll have to start a thread in the photo gallery to keep us updated.
jt8
"All the knowledge I possess everyone else can acquire, but my heart is all my own." -- Goethe
Guess i'll finally have to download infraview. As it turns out i'm starting one closer to home in about 1 week that will have a loan on it, so it goes first.
My short term plans up north are: purchase, new roof, interior demo, and planning so I can get it together in the least amount of trips up north.
Congrats Mark on your latest project. I hope all goes well up in Onaway.
By the way, how is your back doing? Still seeing the Chiro, or did you graduate?
blueOur Skytrak is for sale. It has 500 hrs on it. We want 50k (you pay the freight) and we'll finance it. Drop me an email; it's a good buy.
Thanks Blue. I'm thinking for the price I couldnt pass it up.
The backs doing okay. I still see the chiro every two weeks. Cant believe how much he's helped me. Thanks again for sending me his way.
I will say that this past couple of weeks some of the pain has been coming back. I had a little bit of a hard time going to sleep last night, but at least I can walk.
Hows the project you mentioned in the Oscoda area going?
Edited 10/11/2006 7:35 pm ET by MSA1
Mark, I'm in the process of putting a very interesting building under contract. The seller has an offer on their desk that they are considering and we should know more about it tomorrow. If all goes well, we'll have an Architect up there this weekend to start a process of evaluation.
I might even get interested in doing some landlording up there. The demographics look good and the future looks promising. I'm working with a real estate buyer's agent that will serve as a full service property manager. I like the idea of a hand's off landlording business.
blueOur Skytrak is for sale. It has 500 hrs on it. We want 50k (you pay the freight) and we'll finance it. Drop me an email; it's a good buy.
Sounds good. Good luck to ya! Hopefully with good planning i'll catch up to you soon.
Here is a pic of a previous job.
yes?when in doubt add garlic
Sorry. I was trying to figure out picture posting w/ my FIL. Obviously I havent cracked the code yet.
Another try at posting pictures.
I guess it just needs patience. After browsing for a picture on your computer and hitting upload, you need to wait for the upload button to change back to blue. During this time the picture is being uploaded. If you hit done before this, then the upload is not completed.
View ImageView ImageView ImageView Image
Edited 10/21/2006 10:33 pm ET by MSA1
Edited 10/21/2006 10:34 pm ET by MSA1
Edited 10/21/2006 10:35 pm ET by MSA1
Edited 10/21/2006 10:36 pm ET by MSA1
Edited 10/28/2006 10:18 pm ET by MSA1
I'm guessing ffrom what you're saying you could use the ten grand more wisely else where...
10 grand plus closing costs and insurance and and and...nothing is "just".
Creation arises, is sustained for awhile, and then things change. That’s the dance.
I'm guessing ffrom what you're saying you could use the ten grand more wisely else where...
Probably, but I do like cheap real estate.
Wouldnt be too many closing costs, it would be a cash deal.
Why does the realtor think the house would sell for $100K? Homes in that range or higher are on multi-acre lots or waterfront. Existing multi-family homes in Onaway are selling from $29K-69K.
Jason
Well, I should have read your last post. Best of luck and enjoy those Northern Michigan winters!Jason
100k would be top end. I'm hoping to get it to value more around 80. I'm not necessarily planning to sell right away and I figure if I can out around 50k into it and pull 700/mo out of it i'll be okay.
According to cencus demo's that shouldnt be too hard to do.
Thanks for reminding me about the winters.:>)
I'll bring my shovel.