All Forum Posts by: Joe Hammel

Quote from @Tim Bee:

Quote from @Joe Hammel:

@Derek Elliott

Metro Detroit

My rental portfolio is here and performs very well and is very similar criteria to what you’re mentioning

Purchase: $80k-$130k

Rent: $1100-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for the past 10 years, can send data)

Location: C+, B- (suburbs and certain markets)

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 $20k D class properties. We don’t buy those lol.

 Why is your actual cash flow so low on a $1500/ mo rent amount?

That’s a true cash flow number. So taking out mortgage, taxes, insurance, PM, AND saving for capex, maint, and vacancy so this is a couple hundred dollars of income that I’m not counting as cash flow in how we analyze properties 

@Derek Elliott

Metro Detroit

My rental portfolio is here and performs very well and is very similar criteria to what you’re mentioning

Purchase: $80k-$130k

Rent: $1100-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for the past 10 years, can send data)

Location: C+, B- (suburbs and certain markets)

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 $20k D class properties. We don’t buy those lol.

@Anh Nguyen

Looks like you’re on the right track

@Damian Callaghan

Metro Detroit

(my rental portfolio is here)

Purchase: $80k-$130k

Rent: $1100-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for the past 10 years, can send data)

Location: C+, B- (suburbs and certain markets)

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 $20k D class properties. We don’t buy those lol.

@Anthony Phillips

Metro Detroit

(my rental portfolio is here)

Purchase: $80k-$130k

Rent: $1100-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for the past 10 years, can send data)

Location: C+, B- (suburbs and certain markets)

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 $20k D class properties. We don’t buy those lol.

@Abraham Lowy

My rule on allowing pets or not:

Expect an occupant with pets to damage many items. Unfortunately, that’s just the statistics of it.

- if I recently updated the flooring and paint = no pets

- if the floors and walls are in “good enough” shape but I’m not redoing it all = yes allow pets

By allowing pets in the 2nd scenario I’m already planning on likely redoing the floor and finishes after this next occupant anyways, so I might as well collect the extra pet rent to help cover it.

@Brett Kerry

You’re going to buy, rent, and sell for slightly less with 1 bathroom. But since you’re buying cheaper, it doesn’t matter. My entire rental portfolio only has 1 bathroom. Not a single 2 bathroom house.

I’ve actually notice the roi tends to be higher on 2 bedrooms with 1 bathroom and even 3 bedrooms with 1 bathroom bc you buy cheaper but they still demand good rent.

Vs

A 3 bedroom with 2 baths you pay a premium for it on the front end because that’s what everyone (including the largest group of buyers = primary home buyer) wants, so it drives the price up on these.

@Mahdi Mike

Most “cash flowing” markets still appreciate at the national average of 3-4% per year. So I like picking up cash flowing properties, getting a nice boost in equity through some sweat equity, then riding out high cash flow and 3-4% appreciation from there.

I understand why some people will take negative cash flow and try to pick the next big appreciation book market…but that feels less like passive income through investing and more like gambling to me. I’m not a gambler.

My entire portfolio is in metro detroit and it cash flows so well that no one will convince me it wasn’t a fantastic strategy.

Be cautious. Wholesalers are NOT bound by a code of ethics like realtors and listings on the MLS. This is a major difference. Wholesalers can (and a lot DO) get away with a lot more manipulation and hiding details.

To answer your question, yes you make the offer to the wholesaler and then hope and pray they do things honestly. You need an original contract and then the assignment contract.  Many times we see wholesalers try to get an end buyer sign an assignment but that buyer never sees the original contract...which is what is being assigned. Another option would be if the wholesaler is doing a double closing, then you would sign a new contract with the wholesaler.

Usually wholesalers do not care and you CAN get your realtor involved and they will negotiate in their commission. Now you get to have someone who's done it before make sure you have a clear contract, clean title, necessary contingencies, and help navigate the deal. Unless you're very fluent with buying from wholesalers and reading contracts and know what to look for, I wouldn't recommend buying from a wholesaler without someone helping. 90% of the horror stories we hear come from an oos investor buying a property from a wholesaler and getting taken from a ride.

The thing about Detroit...our MLS deals are better than the rest of the nations "off-market" deals so I personally mostly buy on the MLS and am happy buying around $100k with my $300+ a door cash flow.

Hi Geary,

We have a lot of investor buyers in the Metro Detroit area. I'll send you a PM with my email address. You can google FIRE Realty Team or click on us here to check us out.