Another one of my Deals in Detroit

[Marisa R.]

Hi Everyone 

I have started buying up in Detroit. The cash flow is great, but there will be a nice twist... I believe we will see growth, its already happening in some  neighborhoods. 

I am also seeing... like myself, out of State investors jumping into this market. Neighborhoods gentrifying... Yes, I have said it before on another post... Detroit is the come back kid.

Where in US will you get these returns?

What I am seeing  on the ground is many big players investing in Detroit, the worm has turned.  I will posts some links for those interested

I purchased this property for $49,900 in I would say B grade neighborhood. It was purchased prior to hitting the market, we negotiated direct with the owner who was behind in taxes and wanted to offload.  I spent $3,000 cleaning it up and bringing it up to be rent ready. Got a tenant within the first week.

I am buying forecloses/distressed properties. But some times I buy direct from realtors, but way too much competition this way... one of other purchases had 14 offers on the table... ouch.

I could flip this also look at flipping , but after all out of pocket expenses I would prefer to hold. Also because the market is rising, I expect appreciation will work it magic.... more money by holding this particular property.

I stick to SFH, I wont touch multi housing in Detroit market, way too much risk in my humble opinion and I certainly do not need the headaches.

Selection criteria for tenants is absolutely critical... I understand this is the case in any market. But we are talking Detroit, we need to get this right.  We are dealing with a different beast here.

Here are the numbers

$52,900   (cost to buy/rehab)

$60.00     Insurance per month

$1200      Taxes

$500        Maintenance pa

Rent        $900 per month

20.41% gross yield

[Bill Tyler]

Congratulations!  That is a very nice house.  I had a property in Detroit several years ago after the crash that I bought SO CHEAPLY!  I lived in it for a year while rehabbing - but moved back to Texas due to family medical issues.  I'm really looking at going back into that market.  Maybe another bubble crash soon to drop the housing prices again? lol

You should check out the HUD VASH program and get approval of your properties and yourself as a landlord. It is a housing voucher program ONLY for honorably discharged military veterans who have fallen on difficult times. I have a friend that is taking advantage of the program now.