Single family, 3 bed, 1 bath - Detroit, MI

[Richard Patrie]

Investment Info:

Single-family residence buy & hold investment in Detroit.

Purchase price: $49,900
Cash invested: $49,900

This was my first property. I bought it through a turnkey outfit (notorious Clayton Morris) which proved to be less than optimal.

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

Turnkey opportunity

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

Through MorrisInvest

How did you finance this deal?

Cash from HELOC

What was the outcome?

The place is cash flowing now, but was very rocky for 2 years. Failed city inspections, presence of lead in the garage, repairs not made. It was a learning experience, and encourage any would-be out of state investors to go an see the property. Meet the seller and management staff. The price of the trip would have been cheaper than the headaches I had to endure. I've turned to investing in my local area. Currently yielding 10.49% CoC ROI after putting aside reserves for repairs and vacancies.

Lessons learned? Challenges?

Would be leery of additional out of state investing without doing due diligence.