[Calc Review] Help me analyze this BRRRR deal

Miami, FL · Member since 2017 · 42 posts · 10 votes

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Thank you all in advance. I hope you guys can help me with analyzing this BRRRR deal i am looking at in Detroit. this will be my 3rd brrrr, but the interest rates on the other 2 were much lower so i want to make sure my strategy still works. i dont need the cash flow as much as i want to build generational wealth through amassing equity and properties by increasing my velocity of money through the BRRRR method.

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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
3y
Is the property in Detroit city?
If so, Vacancy/Nonperfoming tenant amount of 4% is woefully inadequate.
How did you calculate the updated property taxes after your purchase?
Logical Property Management4.9446 Reviews
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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3y
Quote from @Michael Smythe:

Is the property in Detroit city?
If so, Vacancy/Nonperfoming tenant amount of 4% is woefully inadequate.
How did you calculate the updated property taxes after your purchase?

Is it? Do you own a lot of properties in Detroit?
Only asking because I have 12-doors there and, while I haven't calculated my exact vacancy rate, I'm quite sure it's below 4%.
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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
3y
@Travis Biziorek we manage over 300 doors in the City of Detroit.
It's our experience & opinion that since statistical performance changes with the Class of property/tenant, that vacancy/non-performing factor should change to match:
Class C > Class B > Class A.
Your thoughts?
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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3y
Quote from @Michael Smythe:

@Travis Biziorek we manage over 300 doors in the City of Detroit.
It's our experience & opinion that since statistical performance changes with the Class of property/tenant, that vacancy/non-performing factor should change to match:
Class C > Class B > Class A.
Your thoughts?

Hey Drew, seems you started an alias.
I think if you do a poor job managing properties and have junky houses in C Class areas you should expect higher vacancy.
My homes are above average for their areas. I'm hands on with managing and placing tenants. I have extremely low vacancy.
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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
3y
I work with Drew.
Statistics have a way of evening out over time, but hope your results stay ahead of the curve:)
Logical Property Management4.9446 Reviews
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