Like Devin said, double digit rates and you could still have fees similar to a first position mortgage.

Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.

But if you put in the effort, Detroit can be incredibly rewarding.Over the last several years, the city has been on a steady upswing: population growth, major corporate investments, and increasing demand for housing are all positive indicators.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

We pride ourselves in keeping the forums positive, helpful, and focused on real estate (please, no politics, religion, etc.).

Be positive -  I would guess that over 95% of our clients complete their exchanges with properties they like.  

I would greatly appreciate any guidance, resources, or recommendations you may have for someone in my position.

I would appreciate any positive or negative comments on your experience with this investment opportunity. 

Investors who establish scalable systems, secure diversified sources of capital, and streamline project execution will be better positioned for long-term success in an increasingly competitive market.For those ready to move beyond individual deals and build a high-volume distressed property business, the focus should be on operational efficiency, strategic partnerships, and disciplined execution.

If a 2-bedroom unit rents for $1,800/month in these neighborhoods, you’re well-positioned to offset your mortgage.2.