All Forum Posts by: Tanner Marsey

I’m gonna try my hand at one before the year ends. Planning on leaving money in the deal as a cushion....

@Matthew John

When experience talks it’s usually a good idea to listen...

We can debate until we’re blue in the face but only time will tell. If you’re dumping money into the Detroit market I wish you nothing but the best and, hopefully, in 10 years I’m kicking myself for not buying while you guys are enjoying the fruits of your labor.

24 hours in a day. It’s all about how you utilize them. Not when you utilize them. Some industry/business requires you to be up early. Especially financial stuff where time zones become an issue. Plenty of late risers/night owls that are successful you just don’t hear from them because it isn’t cool to say “yeah, slept in until 10:30am again today”. It’s all about “hustle” and “grind” and whatever other words gurus and Internet personalities are throwing around right now. For some reason lack of sleep and getting up early have become glorified. That said, my w2 requires me to be a very early riser. Work days have me up at 0330. Still not “successful”

Again, if you’ve invested in RE in the last 10 years, you’ve been successful so I don’t know if I would hang my hat on that just yet...

I am sure there were quite a few big companies operating in Detroit before its last downfall, no? The big companies and myself have very little in common as far as our investing goals go....

Stop being so defensive. This isn't a personal attack on you. It's a discussion about the long(er) term viability of Detroit as it pertains to REI.

You also realize EVERYWHERE has been good for the last 10ish years? If you paid full price for a home near the coast in Southern California 5 years ago you’d be sitting on a few 100k in equity plus cash flowing nicely every month. The next major downturn will be very telling about Detroit.

DETROIT. So great you don’t even live there!

As quickly as it's rebounding..... it can fail just as quickly. Again. Still lots of unknown. Still lots of risk. And quite honestly I have little to no desire to play around in the 45k SFR space even if it equates to positive cash flow. If it works for you though.... keep doing your thing. I wish you nothing but the best.

You and I are pretty much in the same boat. I’ve been doing my research and some things I plan on doing.....

1. Visit multiple times in order to explore the neighborhoods and surrounding areas.

2. Interview/vet multiple PMs

3. Invest somewhere that weather isn’t an issue.

4. Accept the fact that you are going to have to pay a premium to be hands off.

5. Keep in mind that even if you buy the property next to the one you live in.... problems will still arise.

6. Buy in A or B neighborhoods.

7. Verify everything anyone tells you.

8. Buy good deals that allow for you to pay that premium and still make money.

9. Buy as new as possible or recently renovated.

10. Look for a stable market that has potential for rent increase, cash flow and appreciation (the unicorn).

I know a lot of people do it but I would never invest somewhere I haven’t visited for a weekend or two. 9-5 still has your weekends free. I think it’s time and money well spent to get out there for a quick weekend.

Set up a new method of collecting rent. Stop fraternizing with your tenants. Strictly business.

10k tied up in a depreciating asset so you can’t really start counting cash flow until that is recouped. (Plenty will argue this). Wear and tear on vehicle will eat into that cash flow. I imagine some sort of increase insurance?

Not saying it’s not a bad idea but do the research.

You cut your potential buyer market way down with that 5th unit. I would guess that most people looking at 5+ units, due to the loan situation, have done their research and are pretty savvy and they quickly realize that this doesn’t pencil out.... you can always fix that with a drop in the price....