$117k Purchase Price | $500/month cash flow | Metro Detroit

[Joe Hammel]

Investment Info:

Single-family residence buy & hold investment in Warren.

Purchase price: $117,000
Cash invested: $35,000

Contributors:
Joe Hammel

Light Sweat equity single family home - great rental market. 3 bedroom with a garage and no basement. Needed appliances and some cosmetics, bot not much. Spent about $7k on appliances and some minor updates. Rented for $1500 a month. Cash flows $500 a month after saving for maint, capex, vacany, etc.. I personally self manage, but still would be a good deal with PM.

#FIRErealtyteam
www.firerealtyteam.com

What made you interested in investing in this type of deal?

These are great LTR. I have a lot of them and they're the best balance of price/roi/location.

How did you find this deal and how did you negotiate it?

FIRE Realty Team. This was an MLS deal

How did you finance this deal?

Kristopher Natshke is a great investor focused lender here in metro detroit.

How did you add value to the deal?

It needed appliances, sewer line needed jetted, touched up the bathroom a bit, painted kitchen cabinets, and overall just cleaned things up. My strategy for one like this where I didn't go "all out" on the rehab is to allow pets for more rent. If i do all new floors and pets, i'm probably not going to allow pets and take slightly lower rent. However, when the floor and paint are OK but not perfect, i allow pets to collect the extra money and then i'll redo floor and paint next turn.

What was the outcome?

Rented at $1500, high cash flow, love this neighborhood.

Lessons learned? Challenges?

There are great deals on the MLS if you know how to identify them or know someone who can help identify them. That's what we do here at FIRE Realty Team.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

FIRE Realty Team www.firerealtyteam.com (realtor)
Kristopher Natshke (lender)
Elevate Home inspections (home inspector)
FIRE handyman (handyman)
First Centennial Title (title company)

FIRE Realty Team has a resource list with these and many more local connections.