All Forum Posts by: Bennie Smith

Hey @Drew Sygit, I work with a few investors regarding property management. I'm amazed at the condition of the property when it comes over. It seems like investors are not doing their due diligence and it's leaving a bad taste in their mouth.

Thanks Jaycee!

Hey BP Community,

I know the market has its pros and cons—affordable properties, strong rental demand in some areas, but also challenges like property management, vacancies, and neighborhood selection.

For those investing in Detroit:

• What strategies have worked best for you (buy-and-hold, BRRRR, flips, etc.)?
• What neighborhoods have you had success in, and which ones would you avoid?
• Any lessons learned or things you wish you knew before investing?
• How have you handled property management and tenant turnover?

I appreciate any insights you can share! Looking forward to hearing your experiences.

Thanks!

My question would be, 

Are you getting any foot traffic to the property?
Is the rent price and amenities competitive for the market? (are you offering appliances)
Is it with a pm/realtor or a dedicated pm?
What feedback has the PM company provided you about the property? and have you adhered to the advice?
Is it listed on the MLS?

1. Cash Reserves & Emergency Fund

✅ Have 3-6 months’ worth of expenses (mortgage, insurance, taxes, and maintenance) saved.
✅ Keep an emergency fund for unexpected repairs and vacancies.

2. Rental Income vs. Expenses

✅ Ensure rental income covers mortgage, taxes, insurance, and maintenance costs.
✅ Calculate potential profit/loss using this simple formula:
📊 (Monthly Rent - Total Monthly Expenses) = Net Rental Income

3. Upfront Costs Readiness

✅ Budget for repairs, upgrades, tenant screening, and marketing before listing.
✅ Set aside funds for legal or professional fees if needed.

4. Vacancy & Risk Management

✅ Plan for at least 1-2 months of vacancy per year to avoid financial strain.
✅ Understand eviction costs and legal processes in case of tenant issues.

5. Tax Implications & Loan Considerations

✅ Be prepared for higher property taxes and potential changes in tax deductions.
✅ Ensure your mortgage allows renting—some loans have restrictions.

If your financial cushion can handle these factors, you’re in a great position to rent out your home successfully! 💰🏡

Are you preparing to rent your property? What financial challenges have you faced in the process? Let’s discuss! 👇

My advice would be to contact a property management company and see what owners are look to sell their properties. Reason is the property has been maintained, it has a tenant and cash flowing and it's a good way to get your feet wet without starting from square one, and you may walk into a situation where you have equity.