All Forum Posts by: Bala A.

@Bala Apparao

My Detroit property does have better cash flow overall but I am buying in Birmingham to diversify my areas of investing. The houses in the south are newer and have more land, which I like. cash on cash better in Midwest,

Numbers for Detroit:

3/1 SFR 1000 sq ft

76,000 purchase

975/mo rent

650 cash flow approximately

Numbers for Birmingham

4/2.5 SFR 1550 sq ft

114,000 purchase

1,100/mo rent

750-800 cash flow approximately

4/2 SFR 1600 sq ft

128,000 purchase

1250/mo rent

700-850 cash flow approximately

@Joseph Lewis I'm born and raised in Detroit and have also lived in DC for a few years. To say that Detroit is similar to DC 6-7 years ago is not far off, but like others have said, DC has the ability to pump money into infrastructure in the name of increased government, etc.. 

Detroit is definitely coming back in a slow and steady pace. The 7.2 CBD being rehabbed and brought back online by billionaires such as Dan Gilbert and crew have been the first part in repairing 50 years of neglect and decline. Certain neighborhoods are starting to see private equity come in to help turn them around; Grandmont/Rosedale, Bagley, East English Village, Corktown, etc. University of Michigan has partnered with the city to find a way to improve the poor state of education. 

The main issues that Detroit needs to fix before middle class families decide to move back is the education system and insurance rates. Good public schools need to get brought back online and insurance rates need to drop drastically. The blatant red-lining from insurance companies is insane and a HUGE reason why people don't change their residency to Detroit even when they move here. I still use my relatives address in the suburbs to save $100+/mo in insurance, as do many many others -- this is why the population is still "declining" though thousands of new units have come back online and tons of people live downtown again.

Long story short, do your research on the neighborhoods you want to invest in, talk to people that actually live and invest here. Don't watch mass media news to get your stories about the City. I'd be happy to chat some time if you want to learn more.

Good luck!

@Estelle Angelinas

Honestly, I don’t think you can compare Athens, Greece to Detroit, Michigan as tourist destinations! LOL

@Cory Eldredge

Closing on 2 Birmingham SFRs this month. Numbers are good and houses are more modern and look better than ones in Midwest. But Midwest may have better cash flow, think Detroit, Chicago, Cleveland, etc. Huntsville is also a very interesting area, maybe even more upside than Birmingham.

Hello All,

I'm considering doing a 1031 exchange and need some advice.  I own a rental property with a market value of at least 700k, and after selling would have 300k in cash.  Are there any real estate markets out there where I can invest 300k (property(s) value would have to be at least 700k) and expect to get $3,000/month in cash flow?  Also, I don't want to do any major remodeling work. 

Thanks!

@Bala Apparao would you be willing to J/V if I can find deals? I'm looking to work with some seasoned Wholesalers and REI.

Is anyone investing in Detroit? If so, what’s your model and how’s it working for you? Any suggestions for new investors?