Metro Detroit Rental Investment Story

[Brad Cullen]

Hello,

First time poster here - a good friend and coworker of mine introduced me to Bigger Pockets about six months ago. Purchasing our first investment home without his expertise and the information on BP would have made it a nightmare! So, big shout out to him for his help, you know who you are!

The home we purchased is in a blue collar suburb of Metro Detroit. We had a fabulous real estate agent that was able to find several houses that were already tenant occupied. The original list price was $80,000 but we ended up paying $77,500. 

The current tenant had a lease that was good through October of 2018 but we just signed a new lease last week extending him another 12 months! 

Here are the numbers that we were working with:

Purchase price - $77,500

Interest Rate - 5.25%

Month mortgage, taxes, and insurance - $579

Monthly Rent - $1,000

Monthly profit - $421

The house is in good condition. The only immediate repairs/upgrades that are needed are gutters, pitch the landscaping away from the house, and painting the garage (being required by the city for the rental inspection).  Over the next few years it will need a new roof and potentially new windows. I am handy so I plan on doing those projects myself to save some cost.

Now that we have house number one under our belts, we are excited to work on our second property! 

Feel free to reach out if you would like more information on our experience or if you have any questions!