Your list of questions looks very good for getting a feel if a realtor is really “investor friendly”. You could ask them how many closings they’ve had in the last year, or couple years?
Red flags would be someone too desperate. It’s a delicate balance between has enough business to be competent but yet also communicative; vs super communicative because they have no business or experience. So keep that in mind with expectations of how fast someone is responding. Realtors juggle a lot to have a consistent flow of business and keeping everyone happy.
Similar to if you want the best doctor or attorney...good chance they might be a little busy at times. However, no excuse for hours and/or days without responses.
Anyways, here is some info we put together on the suburbs of Detroit that seems to help when OOS investors are trying to decide on which market to invest in:
Metro Detroit has what 99% of Real Estate Investors want, whether they're local or OOS. Couple hundred bucks a door monthly cash flow, solid ROI, and yes plenty appreciation. (#1 appreciating city 2023)
I personally make well over $100k/yr cash flow from 21 properties here. All of which, I’ve purchased within the last 4 years.
There are 2 types of people who dog on Detroit..
1. People who don't actually own property in Detroit
2. People who did it wrong and weren't able to execute.
If you do it right, it’s arguably the best market to invest.
Purchase: $80k-$130k
Rent: $1100-$1500 (no rent control in MI)
1% rule: .9%-1.4% rule deals
Coc ROI: 4-12%
Total ROI: 20-40%
Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)
Appreciation: 3-10%+ (has been double digit for a decade)
Location: C+, B-
These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets within the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.
We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.
The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties in poor condition, because they pencil out to 2-3% deals on paper. We don’t buy those. Being an OOS investor yourself, this is step number one to mitigating risk.
We have found what works and repeat it as much as funds allow.
Detroit has one the highest rent to price ratios in the country…and we focus on the best balance of price/location within the area.
Here is a picture of my portfolio if you/anyone is curious.
