The key to success is understanding the nuances of the market—different neighborhoods perform very differently, and having a strong team on the ground is essential.If you’re interested, I’m happy to share some resources on investing in Detroit and what makes it work for BRRRR.

But a big difference when your costs stay mostly flat.) whether the property is positive or negative $100-$100/mo should make zero difference to you.

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

And keep in mind, each lender has their own maximum LTV and they can be different from one lender to another on the same property.

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

It is a great site, but can be a bit daunting especially as you go down the rabbit holes of all the different options.

How long it takes to be financially ready is different for everyone.

There are a lot of different things to consider here.

We have fair landlord-tenant laws, similar to Texas, but still the specific process is different.

Most occupied property insurance policies will cover "vandalism and malicious mischief" but there are different forms of policies so you'll have to ask.