All Forum Posts by: Samuel Coronado

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...

@Samuel Coronado My experience with building lot purchases is they’re usually only worth what you pay for them once. Then they go down in value.

I bought a lot 18 years ago with the intention of building a home and moving there because my best friends lived next door. They ended up bankrupt and foreclosed on and I moved somewhere else.

14 years later my lot in a town where building had boomed, housing prices were up about 40% and there was solid population growth had gone from being worth $28,500 to being sold for $19,000. And I had paid over $20,000 in property taxes on it.

The reason your seller hasn’t sold the lot for $50,000 is because it’s overpriced.

 see if the seller will do seller financing. Also if it is 1 buildable lot, the additional acreage may not add a ton of value. For example a 5 acre lot is not worht 5x a 1acre lot if it can only support one home. But based on what you wrote, lenders will not touch something that small.