Selling: 3b / 2ba multi-family in Detroit - sec 8 tenants in place! $125,000

[Rosa Belerique]

Hello all,

I'm selling a recently flipped multi-family home in Detroit, Mi. One larger family is in place, but the unit can be used as a multi family as a 2/1 and 1/1 with kitchens in both. The current rent is $1,350, but can get higher rents as a multi-family. Here's a link to where I'm listing it: https://martelturnkey.com/property/21823-2/, and I'll share some financials below. Happy to share detailed financials if you'd like, please reach out. You can also contact anyone in the listing for more information.

Many thanks,

Rosa

[Travis Biziorek]

Quote from @Rosa Belerique:

Ok.

1) Putting in a 2nd entrance will be prohibitively expensive and nuke your ROI. - I would suggest actually calculating this cost before making statements that it would nuke your ROI. The cost of increased rent over time versus some work to change the entrance does work out at some point. The estimated rent of two units was quoted to me as $1,700 and there's a chance this appraises differently than what is listed.

2) Separating the electric & gas would also be prohibitively expensive, so owner will have to include utilities in rents. What is the cost of one versus the others? Again, please use specifics before making blanket statements.

3) Getting the postal service and city to approve 2nd unit will also be a challenge. What is the process?

4) Would have been better long-term to remove upper kitchen and try to turn into 4th bedroom! You're welcome to purchase and do that.

Why isn't more being disclosed about the 9% Cap Rate?
- Property taxes and home insurance can fluctuate a lot in the City of Detroit (and change upon purchase), so should be investigated BEFORE making an offer:)

You can download the financials at the link that I shared. Those are estimates of course.

I just suggest as professional courtesy that you backup your claims because this information impacts others and it seems like people follow you and possibly take what you say seriously.

Hey Rosa, I know you don't want to hear this because you're financially inclined to believe he isn't... but Drew is correct on all accounts.

The reality is you were sold a bum deal and easy system/profits via Martel Turnkey. You should never have been trying to make this property work as a 2-unit investment. But for some reason, Martel Turnkey didn't warn you against it.

In fact, they probably sold you most of the points you're trying to make.

Drew knows the market in Detroit extremely well, as do I. He does not need to back up his claims with specific pricing, etc. because it's very obvious that he's right to anyone that's familiar with the Detroit market.

And your responses seem to insinuate that you know better, yet you aren't providing specifics yourself. The burden of proof here is not on Drew, but rather the person (you) trying to push an "investment" that's a complete lemon.

I truly hope you get out of this with minimal losses.