All Forum Posts by: Joe Hammel

Metro Detroit has what 99% of REI want. Couple hundred bucks a door cash flow, double digit ROI, and yes the prices appreciate and you build equity.

Anyone who disagrees, is missing out. I cash flow $100k a year off 20 doors and have built a ton of equity. Happy to send a screen shot of the portfolio to anyone who wants to see, it just won’t allow me to attach pics to a reply.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $250-$350/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-15% (has been double digit for a decade)

Location: C+, B-

These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets in the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The TRICK, is to not get sucked into the very tempting very low priced houses. The bad reputation of “Detroit” comes from OOS investors wanting $20,000, D class properties. We don’t buy those lol.

Metro Detroit has what 99% of REI want. Couple hundred bucks a door cash flow, double digit ROI, and yes the prices appreciate and you build equity.

Anyone who disagrees, is missing out. I cash flow $100k a year off 20 doors and have created a ton of equity. Happy to send a screen shot of the portfolio to anyone who wants to see, it just won’t allow me to attach pics to a reply.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $250-$350/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-15% (has been double digit for a decade)

Location: C+, B-

These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets in the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

The bad reputation of “Detroit” comes from OOS investors wanting $20,000, D class properties. We don’t buy those lol.

Sure thing Chris! 

@Thomas Harari

Have a few pretty good contacts for HOI. Detroit Proper is tougher.

You could talk to @Drew Sygit for PM. He’s pretty active on here.

@Dan Tran

Sure Dan.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $250-$350/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-15% (has been double digit for a decade)

Location: C+, B-

These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets in the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

Let me know if you have any specific questions

@Dan Riley

Hi Dan,

I’d recommend a little research on Metro Detroit.

With $70k you could buy 2 cash flowing properties.

Metro Detroit has what 99% of REI want. Couple hundred bucks a door cash flow, double digit ROI, and yes the prices appreciate and you build equity.

Anyone who disagrees, is simply missing out. I cash flow $100k a year off 20 doors and have built a ton of equity. Happy to send a screen shot of the portfolio to anyone who wants to see, it just won’t allow me to attach pics to a reply.

Purchase: $80k-$130k

Rent: $1100-$1500 (no rent control in MI)

1% rule: 1%-1.4% rule deals

ROI: 10-14%

Cash flow: $250-$350/door (after all expenses and budgeting for maint, capex, vacancy)

Appreciation: 3-15% (has been double digit for a decade)

Location: C+, B-

These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets in the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The bad reputation of “Detroit” comes from OOS investors wanting $20,000, D class properties. We don’t buy those lol.

@Jose Jacob

Roi is 2nd to none as proven by the best price/rent ratios in the country.

Everyone likes to point out that Detroit has gone through some population loss, but they don’t notice that surrounding areas have population growth.

I have 20 doors and simply don’t have any problems will laws being too tenant friendly. I know evictions can be tough in Detroit proper. I personally don’t buy in the city, largely for that reason. Otherwise it’s fine and doesn’t seem to be getting “worse”

I think the bottom line is that it’s so hard to beat what you can get in metro Detroit.

- low price to entry

- great price/rent ratio = high rio and cash flow

From there, as long as the area appreciates and even just a little bit and “doesn’t get worse” (which in all my experience everything has only gotten better) you’re getting high cash flow, loan pay down and in 30 years you’ll have a cash cow that’s paid off and worth double/triple/quadruple what you bought it for. The rest of the details don’t matter that much.

You’ll be making $100k-$300k in cash flow and the game is over.

Green lights from me.

(My 20 doors purchased starting in 2019 cash flow me $100k/year with very little trouble and I’ve doubled my equity)

@Joe Hammel

Edit*

For the record, I’m heavily biased towards pull chain and NOT remote controlled bc the remotes is something that seems to be a headache. Batteries, comes up missing, stops working, etc..

@Vincent Donato

Personally if there isn’t central air I try a little harder to have ceiling fans. Especially if there is already a box for them.

I can appreciate the theory that they break and the additional maint…however, Personally, they don’t seem to give me much trouble so I don’t mind having them.