What drew me to Detroit initially was the potential for strong cash flow, but I’ve also seen appreciation in several of my properties as the city continues to improve.

@Don Konipol, you bring up a good point both about diversification and active versus passive investments.To add to your point, it isn't just about diversifying in the way you note, although I understand since you are talking to a real estate investment forum.  

I’m buying to improve the property, listing, service, etc so i do it right away.

While you can have a checklist of income, credit score, criminal background, landlord reference, etc, to me the bigger tell of good versus less than good tenants came from all the interactions prior to leasing.  

You're more likely to find maintenance people who are more familiar with balancing those chemicals versus salt.

Yes, you bring home more each month but when you compare the amount you bring home versus how much you had to put in, the returns are typically significantly lower on your money when you pay all cash.

@Dennis Bragg, how did you factor improvements and market appreciation into the buy-back price?

The more rational you are, the better the outcome.Practice and LearnLike any skill, negotiation improves with practice.

Owner needs cash for some improvements, but if he refis interest rate is 11%.  

I will be at the two year mark in about 5 months.Hopefully, improved supply chains, permitting in the city, and being further out from Hurricane Ian helps new construction in the area, as a whole.