Your approach here has definitely given me a lot to think about in terms of spotting hidden value.Curious, with the deferred maintenance challenges you faced, was there anything unexpected that came up during the rehab that you’d approach differently next time?

The national debt is approaching $36,000,000,000,000 if the government numbers are to be believed.

Conceptually you want to take an approach that minimizes your need to be on site - and for that reason I would advise against BRRRR.

While there are undeniable challenges—higher interest rates, tighter lending conditions, and market uncertainty—there are also unique opportunities that can make real estate a very prudent choice if approached thoughtfully.

That said, Detroit is very much a block-by-block market, so understanding the dynamics of specific areas is critical.For professional investors (and even newer ones), Detroit’s future is bright if you approach it with the right strategy, solid due diligence, and an understanding of the challenges.

After talking to my guests and understanding their needs, I shifted my approach.

Quantifying it is more challenging. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Sounds like a good approach @Jeremy Jareckyj!

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