All Forum Posts by: Bala A.

Detroit as a market can be tricky for the novice investor. For the well planned it is the ideal place to Cash flow. Mum and Dad Investors who have executed their strategy very well own 50-100 rentals and have created a solid income stream. It depends on the team that they are partnering with on the ground. Whilst there are many good ones, there are some that bring disrepute to the Detroit investor market place. Location is the key. Bad areas attract bad tenants. And we will have a continous stream of bad news and headaches for the investors. A quick look at the market where a Good property in a Good location can be purchased for the following numbers:

Price - 45,000

Rent - 850 p.m (10,200 p.a.)

Management fee - 816 p.a. (8% management fee)

City Taxes - 1150 p.a.

Insurance - 560 p.a.

Maintenance - 600 p.a. (American Home Shield Warranty)

Free Cash Flow - 7074 p.a.

A word of caution - This could be an ideal situation.

But many fail to see this outcome as they are working with the wrong property management and do not have a process in place for rent collections. As a landlord you would need your PM sending out the 7 day late payment notices as a set process and rule of thumb. Communication with the tenant is critical.

Welcome to BP

I am relatively new to forum, its a great way to network and great education tool

No in all seriousness, squirrels in the attic is an all too common issue. They find their way under the roof and will raise a family there to your tenant's annoyance as they will make a lot of noises (especially in the middle of the night when everything is quiet) 

Step (1) Get traps laid. in the attic for 2-3 weeks atleast  Step (2) Seal and caulk all openings

At the moment I would have to say the Detroit market hands down.

However, you need to be selective with neighbourhoods, otherwise you will go backwards

Be very careful this could possibly not be a squirrel problem but a property management problem, trying to create extra revenue

At the end of the day for me its whether I can work with the tenant, dependent on the scenario.

However, it is a business and the bank won't put your mortgage repayments on hold, they don't care, they want their money.

One of my tenants lost her job, we worked out a payment plan which she followed …... and now she works for me......happens to be one of my best,, hardest working employees. I saw the potential and gave her a leg up... But its become a win/win.

@James Canoy

I call it analysis paralysis …….

I have great book you should read.... it helped me when I started...…. Now I am an investor on steroids... just joking

https://www.booktopia.com.au/feel-the-fear-and-do-it-anyway-susan-jeffers/prod9780091947446.html?source=pla&gclid=EAIaIQobChMIiOqquLCt3wIVBB4rCh0USQ26EAQYBSABEgK-v_D_BwE

I have been purchasing foreclosures and distressed properties, deals off the market.

I agree with @Jamiel Strickland there are buyers that want to offload, quick sale and you can sometimes pick these up at cheaper price. 

Loving the Detroit market at the moment. Its the perfect storm, high cash flow and appreciating market. Don't get me wrong, it does not mean its a walk in the park, buy the wrong property in the wrong location and you will feel the pain. Get the wrong property manager and …. ouch

Happy hunting and investing everyone

Detroit for cashflow

Don't let me tell you I told you so in 12 months time....LOL

Hey Jamiel, great job, congratulations on your first deal. Wishing you many more to come! Tell me about the duplex itself - can you post the address - is it a half duplex - which part of town neighborhood...