All Forum Posts by: Joe Hammel

Curious to know the rest of the story... 2 years later..

Hi @Adam Hamilton and @Jonathan Ramos : I'm sure you've both been helped by now, but in case anyone else is researching your same questions.... I know a few lenders in the area that will Loan down to $20,000. 

I also recommend that the City of Detroit is a quite difficult barrier to entry for starting out, or to start long distance. The markets are micro, and the resources are hit or miss. The cities surrounding Detroit: Redford, Warren, Hazel Park, Center Line, Taylor, Melvindale, Lincoln Park, etc.. have great opportunities and are more consistent. General rule of thumb (personal opinion) As you near a 2% deal or surpass, your risk with increase, and your "location" will tend decline.

Southern Parts of Warren, MI, you can find almost 2% deals, and be in a C- location. 

Always happy to provide more details, and examples.

Old Thread, but perhaps can help someone searching the forums, or Luke if still needed:

Redford, Warren, Taylor, Hazel Park, Lincoln Park, Westland, are some of my favorites to recommend. It's the cities that border Detroit that you can buy: 

(General Numbers, can provide PDF reports and example properties for specifics)

- B-,C+, C, C-,  Neighborhoods

- 3 Bedroom 1 bath 1,000 sqft

- $50k-$85K purchase

- Rent $800-$1200

- Very Light, Light, or moderate rehabs

- ROI (12%-18%)

- $200-$400 cash flow per door. 

This seems to be the most popular profile with a realistic ability to find deals with manageable risk.

Investing in the Actual City of Detroit has a very high barrier to entry. There is a lot more, to learn and study to do it successfully.

@Elizabeth Zielinski Congrats on your first home! That's a great rental market. Hopefully, you purchased at a nice price considering how you acquired it. As Leonard mentioned, South Warren doesn't have quite the same standards as North Warren. For example - a 3 bedroom 1 bath: yes, granite counter tops and stainless appliances, miiight get you $1000.

Some of the best ROI updates to choose from to still get $900-$1000

- Kitchen Counter top (If in poor condition and absolutely needed) 

- Modern Kitchen cabinet/drawer Hardware 

- Paint Kitchen Cabinets 

- Kitchen sink/faucet (modern)

- Appliances: Discretionary: White, Black or stainless and clean = fine. Yellowish = replace

- Bathroom tub caulk 

- Bathroom tub Glazing or maybe just cleaning

- Bathroom Shower head/handles (modern, just not gross)

- Bathroom vanity replace/paint 

- Bathroom Vanity Mirror (modern) 

- Bathroom Faucet (modern) 

- Bathroom Vanity Light (modern)

- Flooring/Carpet = nice/clean

- Lighting should be somewhat updated: polished metal, not gold/bronze

- Paint gray/white trim still works, IF paint is in poor condition

Awesome Elliot. If you've read David Greene's Book on Long Distance Real Estate Investing, You're off to a great start! As he mentions, starts with Building your team. We have great ROI here in Metro Detroit. Always happy to chat and share resources to add value.

What is an example of a good Cash Flowing Deal you are looking for? For example: What purchase price, rehab, rent, ROI, Cash flow?

Awesome! There are definitely deals on the MLS like this. Sometimes just need to "make" them or "force them". Great Job! Great Success story!

@Account Closed

Great!

Hazel Park is another, some areas of Westland, some areas of Southfield (but taxes mill rate is 60 vs most areas being closer to 40). 

@Ilian Bogdanov

MREI, Renegade Detroit, Oakland REIA, and a few more!

I realize this is a pretty old post, but just in case you haven’t found what you needed yet lol.

Happy to chat anytime.

@Jason Jackson

1. Join FB group “Metro Detroit Real Estate Investors Group”

2. Search Wholesalers List

3. Submit your name as a buyer

Hope that helps!

@Steven Jefferson

I think I know what you’re looking for..

Here are some general pointers, if I’m correct.

1. Decent location B-, C, some C- neighborhoods

2. Small rehab, maybe a manageable BRRRR

3. 1.2%-1.8% deal so cash flowing $200-$400 per door

4. $50,000-$90,000 purchase price

5. 3 bedroom, Single Family Home

Locations:

1. Redford: buy $70-$90k — Rent $900-$1200

2. South Warren: buy $50-$90k — Rent $800-$1100

3. Taylor: buy $50-$90k — Rent $800-$1000

Plenty more locations +/- if you want A or B locations or looking for the 2%+ D locations in the city.

I Could be wrong in my guessing, but that’s the typical best help to a new investor in the area. Welcome!

Happy to Chat more..