All Forum Posts by: Joe Hammel

I agree, Not without the network.
Don’t take my word for it, read some google reviews on FIRE Realty Team and I think you will find some more answers.

I can't advocate enough how good the REI is in Metro Detroit. I also can't advocate enough AGAINST a $2,500 house lol. Those. Do. Not. Work. lol

However....

Metro Detroit has what 99% of Real Estate Investors 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.

The "trick" or "secret" is simply to find the sweet spot...

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-

You can find higher ROI on paper if you look at lower priced properties…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.

Detroit has 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 $40,000 or less, D class properties. We don’t buy those lol.

 sure thing shannon, I'll send a messgge

Going off the top of my head so might be some holes...

1. have them supply an application (most generic rental apps ask the right questions)

2. Make sure they meet the basics. There will be red flags that jump out at you...obvious drugs, poor/no work history, etc

3. Have a conversation with them. Review the app with them asking some basic questions, see if any crazy red flags

4. have complete a credit/background check. My favorite is mysmartmove.com

5. Income 3x monthly rent, credit score >600, no evictions, no violent crimes etc

6. Call their references

Obviously you have to be extremely by the book in terns of equal housing opportunity...

From there, when you sign the lease, expectation setting is big. "we are fair and firm" "we issue one warning" "we follow the lease to the t" etc..

@Andrew Potievsky

Another Vote for the Metro Detroit Area.

I make $100k/year off 20 doors here. That's not to brag, but when having the discussion about ROI and Cash flow, one can't deny this market knocks it out of the park if done correctly. I can share a snapshot of the breakdown, if someone wants to see the makeup of my portfolio.

Couple hundred bucks a door cash flow, double digit ROI, and yes the prices appreciate and you build equity.

Afters lots of research and experience, we've nailed down the primary makeup of the highest ROI/cash flow potential combined with the highest probability to succeed:

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.

 Sure thing TK, sending a message.

@Jarrad Chabria

Will do Jarrad, I’ll send a message

@Martin Guerrero

Any prospect with an eviction is denied. Most courts encouragement other resolutions before eviction so for someone to get all the way to the point of being evicted takes a certain type of person that statistically is very high risk it will happen again.

However, many PMs and DIY landlords will start the eviction process the day after a tenant is late. This tells them you’re serious and if they don’t come current you aren’t waiting around 30-60 days before you start the court process.

Rent is due the 1st

Grace period is until the 5th

Late on the 6th

Personally we start the filings with the court usually on the 10th

MOST of the time they come current, we dismiss the case, and charge them the court fees.

These aren’t always bad people. Sometimes They’ve fell on hard times and are trying to catch up, they were out of town and late, car accidents, etc. a dismissed case means they’ve came current.

However, you want to try to determine if they came current, OR accepted cash for keys. Cash for keys would be a BAD sign.

So while an eviction is 100% a deal break, a dismissed eviction case wouldn’t be an automatic deal breaker.

See if you can get past landlord referrals.

@Kass Farran

Yep I can send it. I’ll send a message

@Michael Estacion

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

You just have to know how to recognize it.

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-