Recent real estate failure

[Nicholas Foy]

I closed on a property in Warren, MI on Oct 20 and I quickly found out through my property manager that the house is in a horrible area and won't fetch enough rent to cash flow. I was too giddy to get another property and my first ever property I bought in Texas was successful. Unfortunately, I am putting the property in Warren up for sale tomorrow and I expect to lose 25k. My lawyer, PM, and financial advisor assessed the risks and we agreed to flip it. I guess this can help save future investors this experience by letting you know to not buy a property for the sake of buying one. I also believe in David Greene's philosophy of buying in nicer areas and not downtrodden cities in the Midwest like Warren or Detroit now. I hope this helps anyone looking to buy right now. Personally, I would just wait it out and save your money. What's the worst that could happen? Sitting on a nice, big pile of cash? I'll lick my wounds and onto the next successful one!

[Nicholas Foy]

I paid 125k for it but it’s in South Warren which is too close to 8 mile. I got too giddy about investing in the Midwest and I know this will be a failure. I also consulted with a family lawyer and my financial advisor and they agreed this property is going to draw low quality tenants. The inspection report given by the company referred to me by the realty company didn’t pick up on a few things the PM picked up on. I feel like I’ve been swindled and it’s revolting but this house wasn’t worth it.