All Forum Posts by: Joe Hammel

I'm pretty biased towards Metro Detroit lol. However, I do make over $100k/yr cash flow off 16 properties, so it is backed up with something at least.

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 also built a ton of equity in a just a few years.

Purchase: $80k-$130k

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

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $200-$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. 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...

On here (bp website) at the top under "build your team" is a find a lender option. Might be something to try.

It'll just depend on your price point. 

What we tell people for buying a good investment property in Metro Detroit is have around $30k to allocate towards investing.

You can buy a solid nearly rent ready property for roughly around $100k

20% down = $20,000

Closing and up front costs etc = $6,000

Immediate costs/repairs (will fluctuate the most) = $4,000

$30,000 generally get's you into a property of this criteria. Could be a little less, could be a little more.

Plus, you also need to have savings for your personal and upcoming unforseen expenses....for that, it's whatever extra you feel comfortable with.

Quote from @Logan Sierra:

Quote from @Joe Hammel:

My portfolio is in Metro Detroit. I cash flow over $100k with 16 properties...a few BRRRRs in there. They usually end up a little over $100k just to be in the locations that I want. I also tried the midterm route on a few. 2 of my multifamily units are furnished midterms. 

If I could up vote this twice I would. I am leaning heavier towards the Detroit area. Seeing your numbers is immensely helpful! My plan rn is to find a private investor (if you know one let me know) for the cash payment of a BRRRR deal. Keeping that to 50-60k. Use a personal loan/CC for the renovation. Then refinance. Obviously I would have to account for the loan %, closing costs, fees, and refi % in my underwriting. 

Let’s connect! I’ll send you a message with my cell if you don’t mind. 

 Glad you found it helpful! 

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 20 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: $200-$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. 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...

coffeeclozers . com has some decent data to study.

Other than that, i think it heavily depends on your goals. 

Clearly i'm somewhat biased on the market, but Metro Detroit has been ranked #1 in cash flow for a long time. You just aren't going to find better, more consistent, more available cash flow.

I have 16 properties cash flowing over $100k a year here.

I have a few section 8 in my Metro Detroit Portfolio. Great Price/Rent ratios (technically #1 in the country...just saying lol) For real though, it has a very strong rental demand, low price to entry, plenty of jobs....and did I mention low price to entry? Just can't beat the cash flow.

$100k a year off 16 properties. Started buying 2019. Here is my portfolio for proof....

1. One strong argument to invest now, is that interest rates being "high" (relatively to the last couple years) has surpressed prices. So rates goes down, prices will shoot up even higher. However, if you buy now, you can (and should) just refinance the interest rate down the road if they're ever lower, and even just to pull out equity. I've closed on 6 (I think) so far this year and have 3 offers going out today on more to purchase.

2. If you live in an expensive area. The #1 strategy is to househack. Pretty much regardless of where you live. Buy a duplex and live in one unit and rent out the other. Or buy a house and rent out some rooms, etc. You can continue to use primary residence loans and do this every so often. The con, is that it's a lot of packing up and moving which most people (understandably) aren't willing to do. 

If you're looking for stronger CASH FLOW, then you would want to look at a market that has better price/rent ratios. If you have good boots on the ground for purchase and a good PM, many people have had success doing so. 

My portfolio of 16 properties cash flows $100k/year in Metro Detroit.

I have a few section 8 in my Metro Detroit Portfolio. Great Price/Rent ratios (technically #1 in the country...just saying lol) For real though, it has a very strong rental demand, low price to entry, plenty of jobs....and did I mention low price to entry? Just can't beat the cash flow.

$100k a year off 16 properties. Started buying 2019. Here is my portfolio for proof....

 Sure thing Mohamed, I sent you a PM.