Hey guys,

Wanted to drop this deal I just closed. I've been chatting in DM's with so many who want to get started with investing in Detroit. Doing things a bit different now. I've learned my lesson about relying on turnkey acquisition & management. Got to separate them.

Detroit is a tough market and you need boots on the ground who know what they're doing. I've been working with a few partners on the ground, and we're currently under contract on 9 properties and I'd like to share one of the deals with you here. You may need to click the images to enlarge them.

Summary of the Year 1 cash flow:

The details:

$82k purchase price, 25% down payment, 25% reserve for maintenance, vacancy, and management. And of course factoring in insurance and taxes. This property is a DEAL!!

Here's why I love Real Estate.

This deal is a year one, cash on cash return of 23.71%

Let's now factor in 5% rental increases, guaranteed by section 8 as well as 3% appreciation year over year. (That's conservative. I have a few properties that have increased 30% in the last year), and of course the tax savings + the debt paydown from the federal government or tenant.

Overall returns are insane: I'm a buy & hold investor. I'll never sell this, but let's look at the year by year breakdown over the 10 years:

For $24,000 -- year 1 is a 33% overall return. I can't think of any other asset class where you'll find gains like this. By year 5, I will have a 100% overall return on my initial investment of only $24k!

What's even more exciting, is I'm closing on 9 more just like this! The past year, I've learned market tenants in sub 100k regions are a pain in the ***. I have a few good ones, but with Section 8, rent is guaranteed on the first of the month. I can continue scaling my portfolio with confidence.

Any questions about this deal? Ask away!

If you're thinking about the detroit market, how to get started, and you're looking to buy your first Section 8 deal, send me a dm. Happy to get you started!

Detroit, Michigan

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