Detroit Properties

[Muhammad Saleem]

Dear Community,

I need guidance about my first attempt to wholesale deal please.

I came across a deal in Detroit. I checked the comps and established ARV of 16k but after inspection, repairs estimate is 15k. If I add wholesale fee and other costs, MAO goes in minus. What is the solution to make money in such houses. Detroit is full of such deals.

Interesting thing is, I checked the property comps for lease, monthly rent is 850 to 875/month.

Suggestions will be highly appreciated.

[Stephen Morris]

The best strategy here in the D is to buy and hold. There are a bunch of properties that comp at much higher than they actually sell for. We list properties for $40,000.00 with offers in the low 20's. The rent on the houses is $850 - $950. There are not many houses that are super cheap renting for more than $600 though. The really cheap houses are typically in really bad neighborhoods. There are many investors that have been hurt in the D buying what they are told is a great deal only to find they can't get a tenant that will pay rent for more than a month. I own a property management company and manage properties all over Detroit. The best renters pay the highest rent. Remember when buying property to do your home work if someone tells you it will rent for $800 check Zillow for the area and see. There are many people that take the word of the person selling them the property. There are companies in Utah selling property here that have no idea how many dope dealers live on the street. Those are hard houses to get rented. Give me a call about Detroit if you want to know where you will make a good investment or a bad one I have a lot of investors on both sides of coin depending on who re-habbed the house and who sold the house. I can help with both.