Macomb and Oakland County Metro Detroit Wholesale

5 Replies

What are Rehabbers and Buy and Hold guys looking for in Metro Detroit?

Ready to go at a few lists (SFR's) here and want to know what the buyers are buying. ROI you're looking for, rehabbers? Cap rate, landlords?

What fits your criteria for a deal? 

Let me find one for you. 

Cheers, 

Thomas

For me:

Fix & Flip:

    • Min 3 br / 1 bath (1000+ sq ft)
    • Max purchase price $200k
    • Must have both a basement and a garage
    • Target 20% return on the deal (not annualized)

    Buy & Hold:

    • Prefer 3 br / 1 bath (1000+ sq ft), consider 2 br
    • Must have either a basement or a garage
    • Not in the city of Detroit or Inkster
    • 15% minimum ROI (accounting for property management)

    @Billy Baumann  My criteria has not changed much.  My going in criteria for fix & flips is pretty much the same.  I have made some exceptions if the deal still looks good though.  Flipped a house without a basement last year because the numbers looked really good. As expected, the lack of basement hurt a bit on trying to sell it.  Still did pretty good on it though.  I also bought one without a garage, but the numbers allowed us to put up a garage.

    For Buy & Hold the only change is that I've ventured into Detroit and have 2 rentals there now.  I'm optimistic about Detroit.  There's a lot of opportunity but it's a big city with a lot of varying neighborhoods and I've got a lot to learn. 

    @Billy Baumann  I've just ventured into Detroit and am not greatly familiar with it.  The city is massive (142.9 sq miles).  A couple of good resources for looking at neighborhoods is www.makeloveland.com  also go to www.motorcitymapping.org  

    These are a first good step to see how many vacant lots there are, abandoned houses, dumping, etc.  Sometimes one street over in a neighborhood can make a difference.

    As I mentioned, I have 2 houses in Detroit right now.  One in Nortown and one in Bagley (neighborhood, not to be confused with the street).

    Norwood - I'd be very selective if buying another here

    Bagley - I'd buy more here