Originally posted by @Albert Chun:
Originally posted by @Alex K.:
Originally posted by @Chad Acerboni:
BP Fam -
I currently live in Southern California and I'm looking to invest in my first multifamily property. (Duplex, Triplex, or Fourplex) However, I'm looking for it to be out of state. Being in this area, I do not want to invest a majority of my other assets and I'm not sure I want to syndicate on my first investment. I have been searching out of state, the prices are cheaper and it seems I can get into the market easier for what I want to put down.
I'm aware of property taxes in different states, the expenses of hiring a management company to run, etc.
I have a couple of asks:
1) When looking out of California, what would be a good market to start prospecting based on your opinion/experience?
2) What tools do you use to identify market trends?
3) Connect with anyone who does something like this now
Thanks.
Chad A.
Detroit and surrounding suburbs!
Have many partners and investors from Southern California you can connect with local to you that will share their experiences and our processes.
@Isaura Orellana
Multifamily would be the way to go. If you’re looking for appreciation, Cashflow and a great Return Detroit would be the way to go.
Hi Alex, what do you think are some of the reasons or indicators that are causing the appreciation/cashflow, etc in Detroit?
Hello Albert, there are many factors to take into consideration with many new developments and redevelopment of the city being at the top. Construction everywhere you go. All blight on its way to demolition.
Same people That wouldn’t touch Detroit with a 10 foot are starting to move back to certain areas.
The crowds have changed and it’s not like what it once was.
Many big corporations coming to Detroit and setting up shop including tech industry.
Detroit was once one of the biggest and most thriving cities in America and it did hit rock bottom after the crash and bankruptcy. The only way to go is up once you hit rock bottom.
There is 10 new developments all throughout the city taking place on top of the new Chrysler plant.
It is the Motor City after all and now with the autonomous vehicles coming into play with major corporations working on this in Detroit I see more appreciation on its way.
The comeback it has made so far is extraordinary and it’s not halfway there.
I can only share my experience which has been phenomenal. I am also local to Detroit (30 min commute) which allows me and anyone else local to Detroit to see what’s happening instead of reading about it in an article.
The other things to consider are abundance of fresh water, Access and ports to international waters.
I mean where else can you buy a house for 10k that needs full rehab board it up wait until the next season and sell for double if not more.
The cost of new construction not everyone can afford including some bigger corporations. Why not revitalize a solid structure for $40.00-$50.00 a sq. Ft as opposed to building ground up which will run $100-$150 sq. Ft.
Of course there are pockets and areas which are more desirable than others and you have to know the market and invest wisely.
As far as cash flow goes you can’t get any better for example : I have a rental in Dearborn ( a Detroit suburb) which I paid 80k for 2 years ago that’s renting at 1000 a month. Of course I had to finance this property and am only cash flowing around 300 per month.
On the other hand I have a place in Southwest Detroit Near Mexicantown that costed me around $28,000 all in including repairs etc.(2018) and I'm collecting $900 a month from This SFH. Tenants never missed a payment or have been late and I don't see them going anywhere for a while and if they do it will be filled back up in no time. If I were to sell right now I would get atleast $60-70,000 for it or I have the option to pull out 80% of the 60k to be conservative that's still $48,000.
I prefer to just let it ride until I have 15-20 of these Detroit properties cashflowing that will all appraise between 50k-100k. That’s when I’ll do a blanket loan on all of them and buy a nice apartment complex or something similar.
Where else in the nation can you do this right now other than Detroit?
