Purchase price: $720,000 Cash invested: $60,000 Househack/BRRRRR.Taking advantage of low 5% down Owner occupied conventional loan, then fixing up the units 1 or 2 at a time, raising the rents, and then refinancing to lower the monthly payment and increase cashflow. 1 full gut unit and others were more cosmetic turnovers.

Great tenant but property tax increases have reduced my cash flow.

Negotiations focused on securing a low purchase price while ensuring minimal necessary repairs to increase market value quickly.

@Muriel Hair here's some articles about Detroit increasing over 20% in 2024...https://detroitmi.gov/news/detroit-home-values-increased-ave...https://www.cbsnews.com/detroit/news/detroit-home-prices-amo...https://www.detroitnews.com/story/news/local/detroit-city/20...

I purchased a home here a few years ago, brand new.

Additionally, the property includes an outdoor swimming pool.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

The 10-year treasury is currently sitting at 4.62% as of 1/24/2025 up from 3.73% on 9/13/2024, reflecting a 23.8% increase over the last 4 months (Source).

It's kind of discouraging to hit my budget numbers and timeline, while watching the value of comps tank by tens of thousands and DOM increase by dozens of days, but this is the life we chose.  

The average rate on a 30-year mortgage slipped slightly to 6.76% from 6.85% last week, according to mortgage buyer Freddie Mac.The number of homes actively for sale grew 27.5% compared to last year, the 16th straight month of growth.Newly-listed homes increased 4.2% year-over-year.The median price of homes for sale in February fell 0.8% to $412,000.Realtor.com also reports a growing number of listings with price reductions, with 16.8% of sellers cutting prices in the month of February.How long before we hit equilibrium? 

With 150 units already updated and achieving an average rent increase of $200, we saw a clear opportunity to continue the value-add plan and maximize returns.