All Forum Posts by: Anthony Dooley

 It makes a lot of assumptions that are not true. Analysis inputs vary from market to market. Projections are not reality.

Buying and holding doesn't require a lot of momentum. The biggest problem I have is Lowe's and Home Depot have lines waiting to enter the store. Slows down rehab and repairs.

Pick up any real estate investing book from your local bookstore, watch some youtube videos, and you will find the basic concept with slight variations. The BP calculator is not an accurate tool, in my opinion.

@Jayme Rivera will your lender be compassionate if you don't pay the mortgage? Will the tax collector? I am expecting to lose money during this debacle and nobody in Washington D.C. is going to bail me out.That's why having cash reserves is so important.

I have never heard of a line of credit being frozen. If you are unable to borrow from it, the bank makes less money. It sounds like you are worried about nothing. The good news is, you have less debt now. 

That's a really big IF.  

The best way to invest in Detroit would be to move there, learn the market very well, and start buying investments based on your criteria. There is no way that I would tell someone, especially with little experience, to buy property in another state or city that they do not know. Why Detroit? Why not Lincoln Nebraska or Toledo Ohio? Warren Buffett would say to only invest in what you know. 

@Yishi Pan If you spend $11,000 on repairs, there should be nothing budgeted monthly for Cap Ex or Repairs for the first year or so. The tenant should be paying the utilities, so your monthly expenses are extremely high. BTW, CAP Ex is a commercial property budgeting technique and not an actual monthly expense.

Unless the furniture is made of steel and bolted to the floor, tenants will ruin it, break it, or steal it.

Realtors are going to limit their searches for your criteria to the MLS. MLS listings are by other Realtors who are marketing property at the absolute highest possible price based on recent comparable sales. This means that finding a "good deal" or a discounted property on the MLS is very slim. I have done it, but not in a while. It's a seller's market on the MLS and that is where 95% of sales happen. Investors need to look at the other 5% of sales. The ones off market by a distressed seller, a probate property, tired landlord, zombie houses, etc. Properties that cannot usually get traditional financing due to the amount of repairs needed will be your best value. Buying a property from the MLS at retail price with a traditional loan is not really investing, it's just buying.