All Forum Posts by: David Stevoff

@Victor San Gil

Depending on the location you might be able to refinance the units and bring them back up to shape and collect the passive income. I would recommend talking to a few investors in the area and see what they think. Facebook has a ton of local REI groups you can check out.

Next step would be to find a reputable property manager who can help you with the management and possibly the repairs. Make sure you do your due diligence when talking to companies there are a lot who like to take advantage of out of state investors. 

Where are your properties located? I might be able to guide you in the right direction.

@Keneale McKenzie

Check out suite property management. 

rentwithsuite.com 

They have been good to me. 

@Geoffrey Tanudjaja

Heres a few news articles to read and go over about certain parts of Detroit. Im sure you have heard this before but please pay attention to the street and not a whole neighborhood or zip code. Detroit is on a street by street basis even in the appreciating locations. Make sure you have good boots on the ground here otherwise you will get burned. 

https://nextcity.org/daily/entry/detroit-expanded-plan-to-spread-the-wealth-to-neighborhoods

Fitzgerald...

https://www.crainsdetroit.com/article/20170405/news/170409919/fitzgerald-neighborhoods-4-million-plus-project-to-be-led-by-the

https://www.crainsdetroit.com/article/20180510/news/660351/develop-detroit-plans-70-new-renovated-homes-in-north-end-grandmont

https://www.yahoo.com/news/detroits-mayor-walks-line-recovery-gentrification-can-work-cities-090025888.html?soc_src=community&soc_trk=fb

https://detroit.curbed.com/2018/2/15/17016290/7-liv-development-breaks-ground-avenue-of-fashion

Rent Increases

https://detroit.curbed.com/2018/12/6/18129253/detroit-rent-income-report-largest-increases

CHRYSLER TO BUILD NEW FACTORY

https://www.freep.com/story/money/cars/2019/02/26/jeep-fiat-chrysler-detroit-plant-suv/2989129002/

@Account Closed

I am very familiar with the downriver area. To sum up my feedback on the cities is below :

Taylor - You can get a great entry point and be all in for around 60-80k range. You have quite a few solid B neighborhoods in the city. Rents range from 800-1000 in that price range. 

Dearborn heights - There are 2 zip codes here and that will make a big difference in price. 

48127 Zip is more developed a lot of ranch style homes are knocked down and bigger 2 story homes are being built. This makes appreciation of a older ranch style home realistic. However in 48217 zip you are paying close to 120k-140k for a nice ranch home that will rent for 1200 range, real tight on the 1% rule. 

48125 Zip will not appreciate as much but works a lot better with cash flow. You can see a lot of 3 bedroom ranch homes from 50k-80k all in that will rent from 700-1000 a month. However this is considered a flood zone area and insurance rates are a lot higher, make sure you calculate that into your ROI.

Being local helps but most downriver agents know the area very well and will guide you if you are out of state. Best of luck. 

@Jose Gonzalez

Let me know when your in town I can show you around. Keep an open mind when coming here most areas are on a street by street basis. Tough to get proper appraisals and comps on the lower end homes. 

@Alex Liccione

Jamiel hit the nail right on the head. The city is knocking down abandoned homes and selling the lots for $1000.00. The neighbor has first rights to the lot and is purchased directly from the city. 

Try to focus on plots close to downtown, corktown, university district. Anything to far from the city might not be of value or be of value in the future. 

@Jose Gonzalez

Cash flow real estate is a top option for most investors and a lot less work than the dry cleaner. 

As a Detroit investor you might want to get in the market sooner than later. We are seeing some serious revitalization and appreciation. Just in the past year alone there was a 12% appreciation throughout the whole city minus 2 small neighborhoods. Also Chrysler just announced yesterday that they are building a factory in Detroit adding 6500 jobs. Something tells me the real estate around the new factory will skyrocket. You can get a decent C class home for 30k all in and it might already be tenant occupied. I hope this helps good luck we were all beginners at one point. 

@Steven Morrow

To find the best deals be your own wholesaler. Spend the funds to send out post cards, driving for dollars, cold calling, etc...

I launched a new campaign and within the last 3 days I was able to pick up 3 homes a lot cheaper than going through a wholesaler or MLS.

The best deals come from you looking where no one else is looking. Stand out and you will be able to set up a system and learn along the way. 

@Michael Iacono

If you need some Detroit insight I can help. 

Detroit has been a hotbed for out of state/country investors with low entry points, good ROI, and possible appreciation. I focus on B/C class homes typically spend 45k-60k for a home with a ROI in the range of 12%-16% for single family, closer to 9%-13% on multifamily. Detroit is on a street by street basis do not make the mistake of looking into only a zip code or specific neighborhood. You need feet on the ground to ensure you are buying in a revitalizing area. Lots of money coming back into the city and the $1 homes are a thing of the past in good locations.

If you come to this market out of state/country look into building your team. You can choose to go with a turnkey provider and pay a premium, or you can make contacts and manage the operation. It will depend on how hands on you need to be. There are quite a few contacts on BP that will be able to help. 

@Account Closed

Greg said it right big difference between Grosse Pointe and East Pointe values, and neighborhood grading are different here. 

There are quite a few neighborhoods in Detroit right on the Grosse Pointe border that are appreciating and revitalizing. You will get a lower entry price and have a higher ROI. Keep in mind the city of Detroit is on a street to street basis. Not all zip codes or neighborhoods have the same quality or value.

If you are out of country and need to have boots on the ground I recommend using a turn key provider or an investor friendly agent, there are quite a few here on BP.