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All Forum Posts by: Joe Hammel

Joe Hammel has started 7 posts and replied 537 times.

Post: $100k, 3 Bed & Big Dreams: Help a Newbie Find the Sweet Spot

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

Metro Detroit has what 99% of Real Estate Investors want. Couple hundred bucks a door monthly cash flow, double digit ROI, and yes the prices appreciate and you build equity.

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 statistically the best market in the country for cash flow.

I'm pretty biased towards Metro Detroit...HOWEVER, I do personally make over $100k/yr cash flow from 16 properties here. All of which, I’ve purchased only within the last 4 years. I've also built and seen others build a lot of equity in that time.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $150-$300/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.

*To answer your question directly*, it's slightly hard to name the locations directly, but Mike will be able to talk through these locations with you today when you guys connect. The suburbs are great and there are some specific tools to finding up and coming areas in the City.

A little more about the area:

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 and sounds like you're aware to look for a slightly better property yourself already.

Detroit has the the highest rent to price ratio in the country…and we’ve found the best balance of price/location within the area.

Here is a picture of my portfolio...as you will see. Very close to what you're looking for...but also note...the ARVs are all closer to $100k+ at this point.

Post: Investor approaching the Detroit market, looking to build my core four

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

@Andrew Postell

Mostly 20% down

Occasionally BRRRR'ing, cash buy with a refinance on the cheaper stuff

Post: Investor approaching the Detroit market, looking to build my core four

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

@Andrew Postell

Hi Andrew, almost every single one came from the MLS. I had like 2 of them direct to seller through a connection being that we have a large database and they asked me to buy but 95% of the time they just come from the MLS. We are lucky to just have these types of deals here.

I actually created a YouTube video where I talked through the sourcing and numbers of each property you can find by searching my team on YouTube easy enough. (Not able to link in a post)

Post: Great cities for starting investors

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

@Matthew Kalifeh

I'm pretty biased towards Metro Detroit for obvious reasons lol.

HOWEVER, I do personally make over $100k/yr cash flow from 16 properties here. All of which, I’ve purchased only within the last 4 years.

So I do practice what we preach, and it really freaking works.

Metro Detroit has what 99% of Real Estate Investors want. Couple hundred bucks a door monthly cash flow, double digit ROI, and yes the prices appreciate and you build equity.

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 statistically the best market in the country for cash flow.

I cash flow $100k a year off 23 doors and have built a ton of equity in a short amount of time.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $150-$300/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.

We have found what works and repeat it as much as funds allow.

Detroit has the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.

I can messages screen shot of my portfolio if anyone would like to see how the numbers pencil out

Post: Investor approaching the Detroit market, looking to build my core four

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

I'm pretty biased towards Metro Detroit for obvious reasons lol.

HOWEVER, I do personally make over $100k/yr cash flow from 16 properties here. All of which, I’ve purchased only within the last 4 years.

So I do practice what we preach, and it really freaking works.

Metro Detroit has what 99% of Real Estate Investors want. Couple hundred bucks a door monthly cash flow, double digit ROI, and yes the prices appreciate and you build equity.

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 statistically the best market in the country for cash flow.

I cash flow $100k a year off 23 doors and have built a ton of equity in a short amount of time.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $150-$300/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.

We have found what works and repeat it as much as funds allow.

Detroit has the the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.

Here is a picture of my portfolio...

Post: Markets seeing success atm?

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

Metro Detroit has what 99% of Real Estate Investors want. 

I personally make over $100k/yr cash flow from 16 properties here. All of which, I’ve purchased only within the last 4 years.

Couple hundred bucks a door monthly cash flow, double digit ROI, and yes the prices appreciate and you build equity.

I cash flow $100k a year off 20 doors and have built a ton of equity in a short amount of time. Happy to send a screen shot of the portfolio to anyone who wants to see, it just won’t allow me to attach pics to a reply.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $250-$350/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. We don’t buy those. We have found what works and repeat it as much as funds allow. Detroit is known as the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.

Here is a picture of my portfolio..I also have a couple youtube videos where I talk through the numbers and how I found all of them.

Post: Nothing cash flows in austin

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

Some markets simply don't cash flow. Heavily comes down to Price/Rent ratio (plus other things) but it depends on the demand for purchase and the demand for rent etc to get a favorable market. If looking for cash flow, research best price/rent ratios etc..

I'm biased...but Detroit has consistently ranked #1. 

I've bought in only the last 3 years here and net over $100k a year in cash flow from 16 properties. I can't buy more fast enough.

Post: How would you invest 50k?

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

I'd buy 1 cash flowing investment for a purchase price around $100k

$20k Down

$15k closing costs and some repairs

$35k total

Still sitting on $15k savings.


Here is a picture of my portfolio in Metro Detroit...has multiple properties that fit this description and cash flow well.

Post: To keep or to sell

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604
Quote from @Sharon Supera:

Hello everyone,

I’m seeking your advice on whether I should continue holding or sell a property I purchased last May 2023 in Windsor, Ontario, a city next to Detroit, Michigan. I acquired the house for $350,000 with 3 bedrooms and 1 washroom, investing $30,000 in rehab. The downpayment stands at $108,000, and I have a mortgage at 4.9%, costing $1450/month. Additional expenses include property management at $142/month, property tax at $1700/year, and other costs like insurance and maintenance. Currently, the property is rented at $2100/month.

The house, built in the 1900s, requires significant renovation, and the tenant frequently requests various repairs and maintenance, such as duct cleaning and appliance upgrades. I’ve heard about recent developments in the city, including Stelantes battery establishment, an Amazon warehouse, a new bridge, and the construction of a mega hospital.

Considering the property’s condition, ongoing expenses, and potential development in the area, I’m contemplating whether to sell, especially since the property is not cash flowing and needs substantial renovations. The renovator mentioned the house is in poor condition, requiring a ground-up renovation, which would demand additional funding.

I’d greatly appreciate your insights and advice on this matter. Thank you so much!


 I'm a fan of cash flow in the early periods of building an investment portfolio. It's the foundation of a portfolio, and then once happy with your cash flow I like to start going for "better houses" and diversify location. If your property was in good location/good condition, i would say yes keep it...you have a low interest rates and i would assume it'll keep appreciating. However, if a property turns out to be a "lemon" and just keeps being more maintenance than it's worth...i do think selling is a good option (like getting rid of a car you no longer like). 

Just make sure it's actually not what you want....if you put another $10k into it would it then be perfect? some maintenance is normal...and i'm skeptical of a contractor coming in and blanket saying "it needs a ground up reno"... could help more with pics...

Post: 40 doors - should i expand or retire?

Joe Hammel
Agent
Pro Member
Posted
  • Real Estate Agent
  • Metro Detroit, MI
  • Posts 544
  • Votes 604

@Hamad Khan

If you’re in the fence at all…give yourself the green light to Retire!

You can still dabble, do some things you like…if you see a golden property, buy….if in 2 years you get bored, do a couple more things…but I think so many people feel like they “have” to work…and we don’t.

Congratulations on your success. Now go do all those fun things you’ve been wanting to do…and see how you feel in a couple years.