Michigan and Indiana market

[Dexter De Mesa]

With margins so compressed in California, I was wondering about other out of state markets.  I've had conversations with people who's invested in Indiana and Michigan, and they've shared some pretty impressive cash on cash returns.  If anyone here is in that market, can you please share some thoughts?

[Scott Matthew C.]

@Dexter De Mesa @Saravanan Saravanan @Bethany Rogers

I’m looking at an off market property for $30k and NOT anywhere near Detroit proper.

Monthly income $800

Monthly Experience $474

Monthly cash flow $326

Pro forma Cap Rate 9.53%

NOI $6,292

Total Cash needed: $8,800

Cash on Cash Return: 44.48%

Purchase Cap Rate: 21%

Purchase price: $30k

Purchase closing costs: $800

Estimated Repair cost: $5k *not immediate. Property is mint condition except for the roof. Seller wants out. I suspect she is fed up being a property manager.

Total Cost of Project: $35,800

ARV: conservative|| $67k

Down payment:: $3k

Loan Amount:: $27k

Amortization: 30 year *ballon payment in 5 years

Loan Interest: 8% *private money and JV . * JV will also have share in equity if sold or a buy out.

Monthly P&I: $198

DEXTER:: The secret sauce! Off market properties. Buy them as is. Pay for closing costs. Submit large EMD non-refundable. Have your broker do all the paper work. Pay your broker well and in return he/she will put you on their priority list!

Good luck!