Detroit Land Trust BRRRR?

[Kari Rak]

Hello! 

I'm just starting to learn about rental investing, and this is my first post on the BP forums. I'm currently reading the BRRRR book and curious if anyone has experience using this method on Detroit Land Trust properties. I've delved into the stipulations of their purchases and watched some YouTube videos of Detroit contractors walking through some of their properties that have been purchased from the Land Trust. The price tag on the houses is nothing, but I'm curious what sort of all in costs this sort of property would incur. It seems like there are groups that are flipping them successfully, so I feel like there has to be a way to make it work, but curious if anyone has done it.

[Drew Sygit]

@Kari Rak you want to be REALLY careful buying anything from the Land Bank. 

THe majority of the good stuff is sold before it hits the public.

I know three investors that bought from the Land Bank and they all went WAY over budget to finish the properties. The overruns weren't caused by the Land Bank or thir requirements, they were due to inevitable surprises when you do major renovations.

Rcommend NOT focusing on Land Bank properties, instead look at everything on the market and buy the best BRRR property you can find.

One last thing, many of the Land Bank properties are in Class D Neighborhoods:( VERY difficult to make these work as rentals or flip.

If you'd like to chat more, DM us and check out the Interactive Map of Metro Detroit with color-coded Classes on our website - to make better decisions:)