All Forum Posts by: Diego Ortega

Hi @Kenny Kuramoto

My wife and I just started a YouTube channel to share all that we've learned in our Real Estate Journey. The wins and mistakes we've made. We only have about 6 years or so of experience so far, so not super experts by any means. We have been able to quit our jobs and do it full time along with now doing world travel thanks to Real Estate and Personal FInance, though. This link is technically self promotion, but we hope it brings people value.

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If you have a question, feel free to ask and I'll do my best to answer. Just to emphasize what others have said....it is hard to give specific advice on your specific market and niche in Real Estate. But do start with small goals. Our first one was just to reduce our expenses as much as possible before starting and then we followed that with a doing a house hack with an FHA. That alone took us about 6, but we learned a lot and it made it easier to choose our next set of goals. They change over time as you learn and grow from experience.

@Matt Borton

Just always drive by the area and see what feel you get. If you wouldn’t trust living there, then I wouldn’t do it. Just because it’s closer to 8 mile doesn’t always mean it’s a bad area. Or the area is ok, but the property you found is great. Kinda way your risk/reward.

I became a part time agent and that has helped me tons in seeing data on different areas.

@Matt Borton

Hi Matt. I would consider warren, Redford, east pointe, Roseville instead. That’s where my wife and I invest and we make great cash flow. Talking $1000-$1500 a month easy. We’re at 8 doors, we live in one. You just gotta out in the work on making them look amazing to pull higher rents with good tenant screening. 3-5 beds and at least a basement or garage, both even better.

Oak Park, Southfield, and Hazel Park are good too, but harder to find deals.

I had a brand new 2015 mustang with a $700 a month payment (car plus insurance). It was before we decided to house hack a duplex and get into rentals.

Realized I should have never bought it (Long story, but basically ruined my credit in college and it haunted me for 7 years or so. When I had a good job tried to lease a new mustang, they rejected me even though I could easily make the payments. When my credit was fixed, went to the same dealership and bought a new one as a “win”). Enjoyed it for a couple of years and got rid of it, paid almost $6k to get out of it. Newer cars are nice, but useless when it came to real estate work.

I picked up an old 2005 dodge Dakota extended cab for about $6k. Worth it. It’s a beater so not worried about any damage. Has a bed cover to protect from rain and theft. Don’t know what I would do without it! Needs some maintenance every now and then, but still cheaper than my “new” car payments.

Learned my lesson. But now at 8 units, thinking in a couple of years or so about getting a 3 year old ram (2019 model). Thinking about future family, hauling a camper, and still maintaining our properties. It would be a little reward, but I’d spend a lot of time looking for the best deal for sure and try and pay cash if it made sense or put at least $10k down.

The only negative about a beater is I’m a part time agent aside from our own investing and W2 jobs. Doesn’t give the best impression to high end clients so I usually work with coworkers and other investors who don’t judge my beater! Lol

My fiance and I will be there as well! So excited!

@Account Closed

I agree as well, Royal Oak is very priced out at the moment and taxes are higher which eats into your cashflow. We have had a lot of success in a Duplex in Oak Park, and SFHs in Redford, Warren, and Eastpointe. Rents are really high right now depending on what the place looks like and what pocket of the city it's in. 

If you'd like, I have my license and can help you find a place/go over what my numbers are and what to expect. Send me a PM if you're interested.

Please add me! I live right down the road on coolidge and 9 mile! Thanks!

Hi Nathan! If I were you I would look for a 2-4 unit to house hack with an FHA mortgage. Make sure it’s not falling apart though. Put in some sweat equity to increase rents while you live in one of the units. You should be living for free or close to it, maybe even get paid some money to live there when you have a tenant(s). Take it to the next level and get a roommate or more for your unit to increase profits! Keep saving and get good at being a landlord while you study more about real estate. Then buy more rental units one at a time. Learn the market and network.

Debbie Pelloski Welcome! My gf and I currently are house hacking a duplex in Oak Park and own two more rentals. One in Redford and one in Warren. Ferndale is our favorite city but a little pricey at the moment. If you can land a deal there, you would cash flow well! Let me know if you have any questions as we also are pretty new and only a couple of years in :)

@Keith Jourdan

Sorry you had to deal with this and glad it's over. Thanks for sharing so we can learn from it!