All Forum Posts by: Isaura Orellana

Quote from @Kristi K.:

Quote from @Isaura Orellana:

Quote from @Travis Biziorek:

Hey Richard, I'm doing a lot of them in Detroit still (and I live in California).

Detroit still has cash flow, although it is getting increasingly difficult to find. The best way to find deals is to add value via a BRRRR type strategy. This is what I help out of state investors do with my team on the ground in Detroit.

We're generally seeing SFH's in the $80k-$90k range all in and duplexes in the $110k-$130k range. Then we're seeing appraisals from $100k - $120k on SFH's and $150k+ on duplexes.

I literally had a client email me yesterday. His duplex appraisal came in at $206k and he was in for $160k total. Not bad!

In terms of net cash flow, you'll see anywhere from $100 - $200 per door. And it can definitely go lower if you have a high equity deal (e.g. that duplex I just mentioned). 

I'm in the camp where I'd rather get as much of my capital back as possible and operate closer to break even.

It should be noted that net cash flow includes all expenses... that means a line item for capex/repairs/vacancy as well (lots of folks don't do this in their numbers).

Finally, I can talk for hours about Detroit. The city is crushing it and going through a major revitalization. I personally own 12-doors there and I'm under contract for another duplex currently.

I've been buying there since 2019 and I have some decent equity in my properties. I'm starting to do cash out refi's on them to buy more.

Happy to talk any time or share a bunch of resources about the market there.

If I had a nickel for every out of state investor who came to the Detroit market to attempt to do a BRRRR or got into bed with folks claiming it’s a viable way to succeed in the Detroit rental market if they hired them to help in a direct or non-direct manner and fell on there face I could build another couple dozen rental properties on top of the couple dozen we build in Detroit every year. It’s one thing to come do it yourself and stay in the city to oversee the construction/rebuild of your rehab it’s a whole other trying to oversee from OOS or OOC full time or part time for that matter. Or even worse paying someone else who resides Out of State to oversee your rehab lol. Our clients appreciate that we lower they’re risk on investment drastically because we are in fact the company that built they’re property, and we’re the one’s that are familiar with it, we’re the actual boots on the ground team and we’re the actual in-house management team. Finding contractors in Detroit that aren’t going to take advantage of you and your investment and sink your BRRRR or eat up most of your profits and put you under water is extremely challenging as well. Just another big reason our clients are thankful for our large number of our trusted skilled workers and tradesman that have been with us for years. Again, I HIGHLY recommend when doing the BRRR Strategy in Detroit or anywhere else for that matter to make certain that you reside nearby your rehab or at the least In-State and not accross the country. Happy to chat anytime or share more thoughts on the market.

OOS = Out Of State

OOC = Out Of Country

The BRRRR strategy or method is a real estate investment method that involves buying, fixing up, renting out, and refinancing properties to build a portfolio and generate passive income. BRRRR stands for "Buy, Rehab, Rent, Refinance,

You forgot the last R - “Repeat”

Uh-Ohhhh …your one of those kids lol.. Anyways, 1 typo doesn’t change the overall message but thanks sweetheart.

Quote from @Travis Biziorek:

Hey Richard, I'm doing a lot of them in Detroit still (and I live in California).

Detroit still has cash flow, although it is getting increasingly difficult to find. The best way to find deals is to add value via a BRRRR type strategy. This is what I help out of state investors do with my team on the ground in Detroit.

We're generally seeing SFH's in the $80k-$90k range all in and duplexes in the $110k-$130k range. Then we're seeing appraisals from $100k - $120k on SFH's and $150k+ on duplexes.

I literally had a client email me yesterday. His duplex appraisal came in at $206k and he was in for $160k total. Not bad!

In terms of net cash flow, you'll see anywhere from $100 - $200 per door. And it can definitely go lower if you have a high equity deal (e.g. that duplex I just mentioned). 

I'm in the camp where I'd rather get as much of my capital back as possible and operate closer to break even.

It should be noted that net cash flow includes all expenses... that means a line item for capex/repairs/vacancy as well (lots of folks don't do this in their numbers).

Finally, I can talk for hours about Detroit. The city is crushing it and going through a major revitalization. I personally own 12-doors there and I'm under contract for another duplex currently.

I've been buying there since 2019 and I have some decent equity in my properties. I'm starting to do cash out refi's on them to buy more.

Happy to talk any time or share a bunch of resources about the market there.

If I had a nickel for every out of state investor who came to the Detroit market to attempt to do a BRRRR or got into bed with folks claiming it’s a viable way to succeed in the Detroit rental market if they hired them to help in a direct or non-direct manner and fell on there face I could build another couple dozen rental properties on top of the couple dozen we build in Detroit every year. It’s one thing to come do it yourself and stay in the city to oversee the construction/rebuild of your rehab it’s a whole other trying to oversee from OOS or OOC full time or part time for that matter. Or even worse paying someone else who resides Out of State to oversee your rehab lol. Our clients appreciate that we lower they’re risk on investment drastically because we are in fact the company that built they’re property, and we’re the one’s that are familiar with it, we’re the actual boots on the ground team and we’re the actual in-house management team. Finding contractors in Detroit that aren’t going to take advantage of you and your investment and sink your BRRRR or eat up most of your profits and put you under water is extremely challenging as well. Just another big reason our clients are thankful for our large number of our trusted skilled workers and tradesman that have been with us for years. Again, I HIGHLY recommend when doing the BRRR Strategy in Detroit or anywhere else for that matter to make certain that you reside nearby your rehab or at the least In-State and not accross the country. Happy to chat anytime or share more thoughts on the market.

OOS = Out Of State

OOC = Out Of Country

The BRRRR strategy or method is a real estate investment method that involves buying, fixing up, renting out, and refinancing properties to build a portfolio and generate passive income. BRRRR stands for "Buy, Rehab, Rent, Refinance,

Hi Richard! I highly recommend looking into the Detroit, Michigan, market. We're still seeing deals here at the $150K-$200K price point that have positive cash flow/COC returns as well as steadily increasing appreciation thanks to the growing economy and massive amounts of building and construction taking place everywhere you turn, not to mention the growing population for the first time in decades. The enormous demand to purchase rental properties here in Detroit has also grown immensely. Detroit is undergoing revitalization efforts that are continuously gaining national and international attention. Also, Detroit has demonstrated a special sort of resilience over the years that many aren't aware of. The spirit is high, and it truly is experiencing a resurgence. With the booming tourism and plenty of local attractions, as well as a general higher quality of life than there's been in the past 50 years, they have all played a significant role in greatly lowering the risk for investors and lenders alike in this ever-growing market where one can still enjoy the 1% rule and government-guaranteed Section 8 rent. So all that being said, Detroit is an excellent choice when looking to purchase giant, bolstrous character-driven brick rental properties that are second to none for below $200K. Furthermore, with the recent lower mortgage rates and the steady increase in demand, this all continues to push the market here in a positive direction. And let's just talk about downtown Detroit itself for one quick moment; it's in much better shape than, let's say, downtown Los Angeles or many of the other big west coast cities that are drowning in homelessness, death, and decay at an ever precedented rate. Detroit is much more modern and bussling with tech, innovation, and spirit than one would ever imagine. These are just some of the reasons why my out-of-state and out-country clients love it here. Happy to connect and answer any and all questions you may have.

Buying an out of state rental property from a realtor, wholesaler or off facebook or zillow etc as opposed to from an operation or turnkey provider who has an active, substancial, and effective boots on the ground team or teams to support you after you close on the sale. 

The one thing you and the rest of us have working in our favor is the market has never not bounced back. It always ends up more lucrative than ever before. I suppose it could be a first time in history sort of thing but as far as statistics go the market has always recovered and always went up further than ever before. So not as much risk as one might think. Now dont get me wrong purchasing power is something else all together. So regarding ‘the old’ when to buy strategy I beleive that should come from a balanced place of financial stability, wisdom, knowledge, experience, and gut instincts. If you have any further questions or thoughts on the matters or others feel free to reach out.

Hi Petya, DSCR loans are extremely polular with investors in the Detroit market. Feel free to connect if you'd like to here more. Cheers!

Hello Rafael, I strongly recommend looking into the Detroit, MI market. Detroit has been a straight shot up since the crash. So much growth going on everywhere there. Detroit has officially turned the corner. Rental market is better than ever with appreciation and cash flow more lucrative than its been in years with much less risk for investors. Even the banks and lenders are happy to do buisiness all over Detroit as of late. Always a wise move to look for a turnkey provider offering properties at the 1% and up rule with in-house property management as well. Also, for Detroit I highly recommend tenanting section 8. Government guaranteed rent is definitely the way to go. Happy to connect and answer any and all questions you might have. Happy Hunting!

Turnkey operations are an excellent way to minimize headaches and begin Cash Flowing the day you purchase your property. Most turnkey operations also have excellent in-house management as well as real, true and established boots on the ground teams in place to help the buyer protect they're investment and thereby lowering the investors risk. Other benefits to purchasing turnkey if you as a buyer is out of state or out-of-country is the knowledge and experience the turnkey provider can offer with such things as the best local lender for DSCR loans etc or guiding the investor on setting up a local LLC if the buyer chooses to purchase through a company as opposed to one's personal name. Another benefit to purchasing Turnkey would be they in all likelihood would have vetted the tenant and would have methods in place to make sure a higher quality of tenant was delivered. Perhaps the Turnkey Company may even specialize in section 8 which would be another big positive if an investor is looking for less risk and government guaranteed rent and cash flow. If you have any other questions please feel free to reach out.

First off, you can provide all the links you want about $1266 being the maximum including utilities that section 8 offered in 2021 or even 2020 for that matter but the LARGEST section 8 agency in Detroit (with perhaps the exception of Detroit Housing Commission, aka DHC.) and Michigan which is Michigan State Housing Development Authority, commonly known as MSHDA approves up to $1478 including utilities. So while you blow smoke and mirrors and a bunch of virtual baloney I’m sharing about what’s really taking place on the ground in Detroit. And if I’m talking to fast for you and you can’t keep up Drew just refer above to the real truth and facts from MSHDA on the Wayne County landlord packet that anybody having anything to do with real property management in Detroit should have many of.

Secondly, you say “Isaura Orellana why would a S8 office approve rent of $1250, with no included utilities, for a 3 bedroom rental in the City of Detroit, when there are thousands of cheaper rentals?” This comment makes ZERO sense. Initially I had a feeling you didn’t really know what you’re talking about but now it’s crystal clear you have no idea what your saying and you are more than likely just another misleading , Detroit PM nightmare like 99% of the other PM’s in Detroit with all sorts of hidden fees, secret add-on’s who work against the tenant rather then with them so they end up vacating and you guys salvate over another nickel and dime placement fee.

The question ‘why’ in your first comment has absolutely NOTHING to do with it I am simply sharing my experiences. Also, if you knew the first thing about section 8 tenancy you would realize that there is a ginormous shortage of Section 8 housing in Detroit. We receive over a dozen calls daily from tenants desperate to move into anyone of our great rental properties. The Detroit Health Department even reached out to us personally last week to begin working in tandem with us and our in-house property management team placing section 8 tenants for them that are in dire or desperate need of shelter into our properties. Would you like me to provide Imoni’s number to you as well? PM’s like you love to talk about Transparency and integrity but are just the opposite and are more smoke and mirrors than anything worthy.

More than likely you haven’t even placed a section 8 tenant in years nevermind appealed, disputed or challenged the section 8 rent that was initially approved in order to get even higher section 8 rent and maximize the rent as we do with many of our properties and those properties we deliver to our clients.

I really dont even have anymore time for this with players like you but what I do know is what we are delivering to our clients as well as our section 8 tenants day in and day out, case in by case out, and the one thing we realized a long time ago is that every case is unique and there are always exceptions with the right checks and balances. Case workers look at things such as disability, are the potential tenants collecting food stamps, child support, do they have other income, SS, how many children, what ages are the children etc etc etc.....

In your earlier comment you said average for 3bedroom is around $900. That is laughable to us and also probably another reason we are so successful and you do what you do. If $900 is all you can get than your not just a misleading common two star Detroit property management outfit but a largely ineffective one as well.

I suppose there is good reason you have over 800 posts here on Bigger Pockets and only 200 likes. Guess I’m not the only professional who can see you are largely just a bait and switch transparent-less property management Co likely just scheming folks.

Lastly, our proof is with our gleeful and overjoyed clients. As I stated in the previous posts we will happily provide contact details of numerous clients of ours to any serious investors looking to purchase our turnkey properties and I know our clients will gladly attest to our high section 8 rents as well as our transparency, integrity and overall awesomeness. #GoDetroit #GoSection8