All Forum Posts by: Jonathan Weinberger

lol. You’re wrong. But thanks for the comment! :)

Thanks for the comments!

Hey BP community, 

Every so often I enjoy writing about my investing experience here. It helps me build connections with other investors, and it helps me expand my network of capital partners. 

None the less, I come from a background of training people for a living and it comes naturally to me to help others get started on this amazing journey called "Real Estate Investing"

I started my cash flow real estate investing journey In January of 2023. I spent the prior 18 months obsessing over the markets, reading every book, diving into a massive rabbit hole with mobile home parks, and ultimately decided that in 2023, I had done the research that would suggest this journey is an absolute certainty. 

I came to the conclusion that there is an affordable housing crises. I became obsessed. Toledo, Akron, Cincinnati, Cleveland, Birmingham, Memphis, Milwaukee, St louis...the list goes on. 

These cities are the well known, sub 100k markets in the US. I've talked with people who own hundreds, even THOUSANDS of these units and they all shared the same intuition. There is an affordable housing crisis here in America. There is a perfect recipe brewing where inventory is at an all time low, with interest rates significantly higher than we're use to, capitalized by the insane economic struggles that are going on in our every day lives.... 

That list of areas, it's what everyone talks about...

Nobody raves or brags about the Detroit opportunity...

I think I'll save my story for choosing Detroit for another time, but the long story short version is this: 

I believe Detroit is the greatest economic opportunity standing in front of us all today, and those who know how to navigate it will get stupid rich.

Below is a snapshot of my Detroit portfolio. 

(You may need to right click and open image in new tab to blow it up) 

But I'll provide written information for what you're looking at: 

I'm a 100% section 8 Investor. I don't **** with cash payers. 4 Units are currently vacant, being screened for tenants. The numbers calculated assume 0% vacancy (but I reserve 5% for it) . The 4 vacant are new rehabs I just completed.

Total Rents Collected: $23,025/mo 
Debt Service: $12,358/mo (sad for me. 8% interest rates lol) 
Property Management 10%: $2,303/mo
Reserves (Vacancy 5%, Maintenance 10%): $3,454/mo
Phantom Cash Flow: $8,365/mo
True Cash Flow: $4,911/mo (Money I can legit burn) 

Total Purchase Price: $1.573M
Total Rehab Cost: $122,617
Total Cash In Deals: $539k 
Total Appraised Values: 1.81M


Hope this inspires someone. If you have questions about getting started in Detroit, post your comments below, or feel free to send me a DM!

My plan moving forward is to acquire another 20 doors before years end and I'll provide another Portfolio update around then.


Happy Investing!

Jonathan

weird question. Who gives a ****. Are they paying rent on time? 

hey mate -- this sounds like a problem with your network and team. Something to note about these markets is you do need economy of scale. 

I talk to a lot of people that want to get started in detroit where I invest, and if they can't quickly scale to 10 doors, I tell them to steer clear. With 10 doors, you're looking at $10k/mo in guaranteed rent from section 8. (probably more) -- It's unlikely you'll hit $10k in expenses. The 10 doors all cover the expenses of the rest and you'll finally cash flow. 

Get a better team. Do better rehabs. 

 Ha, appreciate the comment. Love your videos man. Super entertaining and informative. Keep it up!

Keeping tabs on the great city of Detroit, below is the high lights! 

If you're thinking of investing in Detroit, I've spent over $2M in the area. I plan on spending another $2M by end of 2025. This city is loaded with economic opportunities. 

If you have questions or looking to get started, send me a dm. I'd love to help!


Below is the email I shared with my private investors. Watch the full 60 minute discussion:

Great news from Detroit’s 2024 State of the City address! Mayor Duggan has laid out an inspiring vision of growth and transformation. Here are the key highlights:

1. Tourism & Events:
   • NFL Draft: Detroit hosted the NFL Draft, attracting 300,000 visitors and capturing over 50 million viewers worldwide, boosting local tourism and global visibility.
2. Automotive & Manufacturing:
   • New Jeep Plant: Thousands of jobs are being created for Detroiters at the new Jeep manufacturing facility.
   • Factory Zero: With 4,000 employees, GM’s Factory Zero is leading the charge in electric vehicle production.
   • Lear Seating Plant: A new facility bringing 700 jobs, reinforcing Detroit’s manufacturing base.
3. Corporate Expansion & Development:
   • Amazon: 1,200 new jobs added with Amazon's expansion.
   • GM Headquarters: Construction is underway for GM’s new headquarters.
   • Huntington Bank Headquarters: Moving its headquarters to Detroit, signaling confidence in the city's economic prospects.
   • JP Morgan Chase Call Center: Successfully launched, employing 120 Detroiters at $24/hour, with plans for expansion.
4. Urban Development & Housing:
   • Historic Building Restorations: Iconic abandoned buildings are being revitalized.
   • Affordable Housing: A substantial $200 million investment into affordable housing initiatives.
   • Vacant Properties: The Detroit Land Bank has reduced vacant houses from 47,000 in 2014 to just 4,400 in 2024, with a target to eliminate all vacant houses by the end of next year.
   • Property Values: Detroit leads the nation in property value growth, attracting more investment.
5. Health & Education:
   • $3 Billion Hospital Development: A major new hospital is being developed.
   • University Investments:
     • Michigan State University: New health and education research center.
     • University of Detroit Mercy: Undergoing a $100 million renovation for its nursing and engineering facilities.
     • University of Michigan: Committing $200 million for a new center of innovation.
     • New Riverfront University: Enhancing educational opportunities along the riverfront.
   • Free College: Detroit offers four years of college education for free, aiming to boost education and future workforce readiness.
6. Public Safety & Infrastructure:
   • Crime Reduction: Homicides and carjackings have decreased significantly.
   • Freeway Security System: A $30 million grant will fund a new security camera system to enhance safety.
   • Illegal Vehicle Removal: The city plans to remove all abandoned and illegally parked vehicles by the end of 2024.
7. Sustainability & Climate Action:
   • Solar Energy Initiatives: Converting 127 buildings to solar energy and developing new solar fields.
   • Home Energy Efficiency: Community funds are available to help homeowners upgrade their homes to be more energy-efficient.
8. Economic & Employment Growth:
   • Unemployment Rate: Down to 6.9%.
   • Job Availability: Over 4,720 jobs currently open in Detroit.
   • Land Development: $100 million investment in revitalizing a 7.5-mile stretch from North to Fullerton.
9. Financial Stability & Credit Rating:
   • Detroit has returned to an investment-grade credit rating for the first time since 2009, reflecting its financial recovery and growth.
10. Community and Social Investments:
    • Affordable Housing Leader: Continued emphasis on affordable housing solutions.
    • Abandoned Buildings: Continued focus on converting abandoned buildings into apartment spaces.

Detroit’s momentum continues to build, presenting numerous opportunities for growth and investment.

The city is ranked number 1 in America for increased property values. Let's ****ing go!!

Welcome to Detroit, Eve! I've invested over $2M so far into the SFH market. Flipped one multi-family. Check out my post here to see my experience. Some solid learning moments.

Any questions about getting started, send me a dm. Happy to help!

Check out my posts. I've invested over $2M in Detroit and have shared my journey on here. Happy to answer any questions you have. 

At a minimum, dm your property management group and I'll tell you if you should stay away from them. I've chatted with a lot of them and fired 2 of them :)

Amazing job @Tony Stephan!! Sign looks epic!