$100k Annual CASH FLOW with 23 Doors

[Joe Hammel]

Going to start with the cliche "not trying to brag but..." 

For real though, this is my portfolio and I get asked what's in it and "how did you do it?" all the time, so I try to every now and then share it with others and answer any questions.

Location: Metro Detroit

Primary target: 

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 8-14%

Cash flow: $150-$300/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-7%+ (has been double digit for last decade)

Location: C+, B- 

Some Notes:

- I don't actually save 15% for vacancy, maint, capex any more. I used to. Now, on 23 doors that adds up to almost $50k/year. Right now, I sit on about $60k reserves and operating expenses (I have other reserves for other business/life) and if that $60k dips down I let it fill back up, and as it starts creeping up I add to my "next purchase fund"

- Yes, cash flow is lower and harder to find right now heading into 2024...but it's still out there. At least where I buy, it is.

- I'M BIASED: but look around at any data and Metro Detroit is the #1 cash flowing city in America. It is what it is and it's tough to argue against that. Not going to spend a lot of time defending the location I invest in, because I feel like the proof is in the numbers....my "issues" and "bad tenants" are very far and few between. There are definitely some do's and don't and a "sweat spot" when investing in Detroit. I or someone on my team would be happy to chat about that if someone wants.