Metro Detroit Rental Investment Story

5 Replies

Hello,

First time poster here - a good friend and coworker of mine introduced me to Bigger Pockets about six months ago. Purchasing our first investment home without his expertise and the information on BP would have made it a nightmare! So, big shout out to him for his help, you know who you are!

The home we purchased is in a blue collar suburb of Metro Detroit. We had a fabulous real estate agent that was able to find several houses that were already tenant occupied. The original list price was $80,000 but we ended up paying $77,500. 

The current tenant had a lease that was good through October of 2018 but we just signed a new lease last week extending him another 12 months! 

Here are the numbers that we were working with:

Purchase price - $77,500

Interest Rate - 5.25%

Month mortgage, taxes, and insurance - $579

Monthly Rent - $1,000

Monthly profit - $421

The house is in good condition. The only immediate repairs/upgrades that are needed are gutters, pitch the landscaping away from the house, and painting the garage (being required by the city for the rental inspection).  Over the next few years it will need a new roof and potentially new windows. I am handy so I plan on doing those projects myself to save some cost.

Now that we have house number one under our belts, we are excited to work on our second property! 

Feel free to reach out if you would like more information on our experience or if you have any questions!

@Brad Cullen
Hello there! My partner and I are looking to invest in some Detroit turnkey properties. We are based in California though and one of our biggest issues is getting a solid agent that we feel confident with representing our interests so far away. I'd love to get any advice or recommendations if you have someone you really like.
Thanks for your post!

Originally posted by @Brad Cullen :

Hello,

First time poster here - a good friend and coworker of mine introduced me to Bigger Pockets about six months ago. Purchasing our first investment home without his expertise and the information on BP would have made it a nightmare! So, big shout out to him for his help, you know who you are!

The home we purchased is in a blue collar suburb of Metro Detroit. We had a fabulous real estate agent that was able to find several houses that were already tenant occupied. The original list price was $80,000 but we ended up paying $77,500. 

The current tenant had a lease that was good through October of 2018 but we just signed a new lease last week extending him another 12 months! 

Here are the numbers that we were working with:

Purchase price - $77,500

Interest Rate - 5.25%

Month mortgage, taxes, and insurance - $579

Monthly Rent - $1,000

Monthly profit - $421

The house is in good condition. The only immediate repairs/upgrades that are needed are gutters, pitch the landscaping away from the house, and painting the garage (being required by the city for the rental inspection).  Over the next few years it will need a new roof and potentially new windows. I am handy so I plan on doing those projects myself to save some cost.

Now that we have house number one under our belts, we are excited to work on our second property! 

Feel free to reach out if you would like more information on our experience or if you have any questions!

 Welcome to the site.

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633

Congrats! I would be interested in your agent contact as well.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.