All Forum Posts by: Nader Hachem

@Joe Hammel nice! What type of tenant classes are you seeing In Taylor?

@Jonathan Greene good point. I havent viewed much properties- my thought process was find properties that look good on the spreadsheet and then view them in person to verify, then offer and so on

Wouldn't viewing properties before running spreadsheet analysis be a waste of time or am I thinking of this wrong?

 Amazing job on this! I never had Hazel park on my radar, but this gives me an in-depth look on this and could be an opportunity!! Anything for Dearborn Heights/Garden City/Taylor/Westland like this? 

Great  job and loved the report

@Drew Sygit that makes sense. And I'd also like to agree on that point about using money to reinvest. I feel like since I'm starting off, I'd want to reinvest rather than be too conservative and put too much aside...

I want to make sure my numbers are correct so I don't see a bad deal as a good deal. I'll start using a 20% total reserve and another 10% for property management if I decide to go that route

I'm currently looking at 3 bedroom 1/2 baths in Garden city and Dearborn heights. Properties with minimal renovation (cosmic is okay) with a price range sub ~150k

@Michael Dumler that's a good point! Once inspections are done it'll be easier to plan for capex

@Drew Sygit why wouldn't you worry about CapEx on SFH? Doesn't this set aside money for big ticket items like furnace, water heaters, roof, etc

Setting aside money for repairs too would cover smaller repairs like toilet issues, paint, etc

Hey all,

I've been doing some deal analysis to find my first property by looking for SFHs in the midwest (Michigan) on the MLS. My goals for this property is a 8%-10% ROI with $150 cash flow after expenses and savings a month. When running my deal analysis, i put aside ~21% for vacancy, CapEx and repairs, then another 10% for property managers. I am not going to start off using a property manager since i'll only have one property, but i want the deal to still make sense when i do end up getting a property manager. What guidelines and goals do you guys use for your property analysis? How much do you guys put down on your properties to begin with? i'm aware properties require 15-20% down depending on the lender for investment properties

My bigger goal is getting over the hump and getting that first property - rather than having amazing cash flow. With that being said though, i don't want to rush and end up with a bad deal 

Thanks for the response!

I will be doing a traditional buy and hold. I do have access to the MLS which is where I spend most of my time. I feel like doing comps for all the properties I look at is not the best way of filtering things out. What methods do you use during your analysis? What do you use to automatically filter out properties.

My filters include price range and bedroom count. Do you have anything more specific that works for you?

Hey BP,

I've been spending my time lately looking for my first deal. I've been doing this by finding properties on the MLS and using the BP calculator to analyze them. I'm looking for a $200 CF/month with 10% Cash on cash return.

What type of upgrades do you guys deem necessary when looking for a rental? Do you guys have a rule of thumb on what should be replaced and what would just be considered extra? I'm struggling on figuring out what ACTUALLY needs to be upgrades. Do you guys focus on cosmetic things like painting the walls to match? 

Of course things like worn out paint, worn out carpet should be changed out. 

@Jordan Jones after some research I’ve figured that Melvindale has much smaller houses that don’t really cash flow well due to lower rent. Makes me feel good knowing I could eliminate that from my selection.

Dearborn heights is good too... it does cash flow well (according to what I’ve been seeing) one issue is there’s a big flood zone. Requiring to pay/deal with flood insurance on your rentals.

Redford has been looking like my best options. I’m looking to connect with investors and property managers in that area to get a better idea. Thanks for the input Jordan!