Detroit Cash Cow and Strategizing in the Market

[Marisa R.]

I have been posting some of my Detroit deals/houses I have purchased on BP so investors can learn along the way. 

No expert but am starting to work this market and getting an idea on what strategy will hit the sweet spot. 

I have a mixture of properties, what I call slow flips, these are the SFH which are desirable, larger 1500-1800 sq ft, where the market is starting to rise, but it would be a better option to flip in 18 months and capture more growth. Its no secret that there are markets that are moving in Detroit and its also no secret that you need to be selective where you buy.

 For example if you look at University District in Detroit...... houses in this pocket are selling for $250K+ dependent on product/location. Next door you can buy in Bagley for perhaps as low as $65-70K, this is now a rising market. From my observation we are seeing the ripple effect, where buyers can no longer afford prices in one neighbourhood and move to the next, therefore demand increases..... happy days 

I also have SFH that I purely hold for cash flow, an income stream. These generally require a rehab and foreclosures/distressed houses. Stay away from war zones..... that's the easiest way to lose money

That word "cash flow' what does it mean.... nothing on paper, unless you have the asset working for you and putting dollars in our pocket. 

Detroit is a tough market, we know this. Its not passive, you need to have the right people on the ground and systems in place to make it work.

This is one of my cash cows in Warren MI and the numbers.  This is a keeper

Tax - 1150

Insurance - 630

Rent - 750 per month

Rehab - 8,000

Purchase Price - 23,000