Just starting to look at some Metro Detroit, Michigan properties and want to make sure that I have enough of the bits and pieces accounted for in my calculations.
Would the property below pass your initial glance test and start the next phase of collecting more due diligence and asking questions?
3 Unit Multi-Family, Currently Fully Occupied, Up to Code. All Separate Electric, Gas, and Water. (2) Two Bedroom Units and (1) One Bedroom Unit. Not located in Detroit but what I would call the first ring of suburbs.
Stated monthly rent $1,550
Estimated Monthly Costs
$155 Prop. Manager
$430 Est. Mortgage Pmt
Estimated Upfront Costs
$4,500 Initial repairs/refresh
Projected Cash Flow: $490
This one is in Redford but I am also looking at Livonia, Inkster, Southfield, Warren, Roseville, Fraser, and maybe Clinton Twp.
A high level comparison is what would you be able to buy 3 SFHs for around there? Have not been there for years...to know the local market....but is an interesting comparison or possible alternative.
I figured that one would be in Warren.
Why not manage it yourself? I would hate to send 150 a month on that.
Also it can be tough to rent out those one bedrooms. Is it on the very top floor?
?@George Helms a SFR in the same area would be about 50k each.
?@Scott K. I am not sure of the layout and I am looking at PM due to being new and some time/scheduling.
Mostly I am looking at this one just to see if my calculations are correct and to make sure that I have all of the possible expenses accounted for before I actually look at something to pull the trigger on. I am still looking at local banks & credit unions to see what all of my financing options are.
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