Purchased an Investment Property in Cornerstone Detroit

[Elton Tate]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $149,999
Cash invested: $45,000

The property is located in Cornerstone on the border line of East English Village. The property surrounded by a number of restaurants, and attractions. It's located 15 mins away from downtown Detroit. The expected monthly cashflow is $2,850.

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

My wife and I were interested in investing in this type of deal due to the area the home is located. Currently, East English Village home prices are up, and the neighborhood committee is committed to building up the area. With the home being right outside the EEV border, it's going to be significantly impacted. Also, the home is located near the following: major freeway, hospitals and healthcare facilities, located within 15 mins of downtown, plenty of restaurant options nearby, etc.

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

We found this deal through Zillow. Unfortunately, we had no luck on the MLS. The homes were being snatched up left and right. In order to secure the property, we had to offer 10K over asking with the hope it wouldn't appraise. But lucky or unlucky of us, the home appraised higher, which provided us with more equity to start out with.

How did you finance this deal?

We financed this deal using a conventional loan, and taking portions of my 401K out to make the down payment and stage the house for STR and MTR.

How did you add value to the deal?

N/A

What was the outcome?

The home is now listed on Airbnb and FurnishedFinder. We booked a couple people so far, with one person interested in creating a mid term lease.

Lessons learned? Challenges?

It definitely took more than planned to get started. The home had a number of critical issues that were not found during the inspection. But luckily, our real estate person had a few contacts that were about to assist.

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

Yes, we worked with a real estate agent that specializes in invest properties that was a major help.