Section 8 rental in Detroit

[Leroy K. Williams]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $30,000

This 3-bedroom 1 bath property was purchased from a wholesaler for $35,000
Our group invested approximately $30,000 into the renovation
We placed a Section 8 tenant after a few weeks, Section 8 pays $1,350 per month

What made you interested in investing in this type of deal?

Our group wanted to take advantage of the opportunity to create a cash flowing rental in an up-and-coming neighborhood in Detroit

How did you find this deal and how did you negotiate it?

We found it through a wholesaler

How did you finance this deal?

We used DSCR through one of our partners

How did you add value to the deal?

We performed a light rehab focusing primarily on the kitchen and bathrooms

What was the outcome?

We were able to rent this home fast and have had a stable Section 8 tenant every since

Lessons learned? Challenges?

Our team learned that the refinance portion of the BRRRR strategy is heavily reliant on the quality of the repairs. There is a specific set of improvements we will always put in place to ensure the max ARV

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Property Rehab Central LLC

This was the full-service Turnkey team