All Forum Posts by: Joe Hammel

@James Devoe

Metro Detroit

(my rental portfolio is here)

The trick is to know what to buy and not be tempted by the houses you shouldn’t lol.

Purchase: $80k-$130k

Rent: $1200-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for past 10 years, will gladly 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. Ever hear of Ford, Rocket mortgage, or Beaumont hospitals? All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The bad reputation comes from OOS investors wanting $20k D market properties. We don’t buy those lol.

@Joseph Gary

We love Metro Detroit

(my entire rental portfolio is here)

The ticket is just to know what to buy and not get tempted by the stuff you shouldn’t lol.

Purchase: $80k-$130k

Rent: $1200-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for past 10 years, will gladly 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. Ever hear of Ford, Rocket mortgage, or Beaumont hospitals? All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The bad reputation comes from OOS investors wanting $20k D market properties. We don’t buy those lol.

Investment Info:

Single-family residence buy & hold investment in Warren.

Purchase price: $117,000
Cash invested: $35,000

Contributors:
Joe Hammel

Light Sweat equity single family home - great rental market. 3 bedroom with a garage and no basement. Needed appliances and some cosmetics, bot not much. Spent about $7k on appliances and some minor updates. Rented for $1500 a month. Cash flows $500 a month after saving for maint, capex, vacany, etc.. I personally self manage, but still would be a good deal with PM.

#FIRErealtyteam
www.firerealtyteam.com

What made you interested in investing in this type of deal?

These are great LTR. I have a lot of them and they're the best balance of price/roi/location.

How did you find this deal and how did you negotiate it?

FIRE Realty Team. This was an MLS deal

How did you finance this deal?

Kristopher Natshke is a great investor focused lender here in metro detroit.

How did you add value to the deal?

It needed appliances, sewer line needed jetted, touched up the bathroom a bit, painted kitchen cabinets, and overall just cleaned things up. My strategy for one like this where I didn't go "all out" on the rehab is to allow pets for more rent. If i do all new floors and pets, i'm probably not going to allow pets and take slightly lower rent. However, when the floor and paint are OK but not perfect, i allow pets to collect the extra money and then i'll redo floor and paint next turn.

What was the outcome?

Rented at $1500, high cash flow, love this neighborhood.

Lessons learned? Challenges?

There are great deals on the MLS if you know how to identify them or know someone who can help identify them. That's what we do here at FIRE Realty Team.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

FIRE Realty Team www.firerealtyteam.com (realtor)
Kristopher Natshke (lender)
Elevate Home inspections (home inspector)
FIRE handyman (handyman)
First Centennial Title (title company)

FIRE Realty Team has a resource list with these and many more local connections.

Investment Info:

Single-family residence buy & hold investment in Warren.

Purchase price: $117,000
Cash invested: $35,000

Contributors:
Joe Hammel

Light Sweat equity single family home - great rental market. 3 bedroom with a garage and no basement. Needed appliances and some cosmetics, bot not much. Spent about $7k on rehab. Rented for $1500 a month. Cash flows $500 a month after saving for maint, capex, vacany, etc.. I personally self manage, but still would be a good deal with PM.

Metro Detroit

(my rental portfolio is here)

Purchase: $80k-$130k

Rent: $1200-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for past 10 years, will gladly 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. Ever hear of Ford, Rocket mortgage, or Beaumont hospitals? All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

The bad reputation comes from OOS investors wanting $20k D market properties. We don’t buy those lol.

Welcome from the FIRE Realty Team!

Google FIRE Realty Team and see if you like the reviews. 

Typically the agent and PM will be separate experts to focus on each thing (otherwise they might not be great at either)

Logical PM @Drew Sygit is a one of the most knowledgeable PMs in the area.

Google FIRE Realty Team and read a few of our reviews.

@Mica Moore

Hi Mica,

That’s a great question. Since it’s really hard to nail down data on something such as that, I would have to reference theory and experience.

I’ve had a few recent tenant turnovers. The most recent one I went in for my post move out and inspection and the house was perfect. This occupant was there for 2 years (moved out because they bought a house) and it looked almost the same as it did the day I rented it to them 2 years ago. Literally the only thing I did was caulk around the kitchen sink and trim some shrubs in the front.

I’ve had others recently that I would rank as pretty “normal” turnovers..a few repairs, paint that, replace that carpet etc. For the most part it seems to be a balance of the property you buy initially (buy a good solid house, get a professional inspection, and do the necessary repairs prior to renting) and then selecting a good quality tenant.

For the most part I can’t think of anything that would be outlandish in terms of maint. When I have a tenant that moves out that’s been in there for a long time (10+ years) I expect to do a solid amount of work, which I think would be normal.

Once rented, so far (fingers crossed) my occupied properties are just your normal repairs and the occasional old furnace or such that is due to be replaced and finally breaks.

I think a big factor is, personally I/we aren’t buying in locations where the median income is super low as you’re referencing. I personally buy in markets where that is higher and I also do pretty nice updates after purchase to try to “bullet proof” the home for longevity as much as possible - so I think that could be why I haven’t noticed anything that feels “above average” in terms of maint/cap ex.

I DO think there are many properties in the area that if bought would have above average maint/capex because of the condition of the property and quality of tenant. We hear about a lot of people experiencing that. I try to buy better houses in my preferred markets. For example, I paid almost $120k for my last couple houses…there are plenty of houses for $20k-$40k that might pencil out even better on paper but I would never buy. I prefer to pay a little more to hopefully get a property with lower maint/capex and a higher probability of the tenant paying.

@Marshall Leipprandt

Thanks Marshall. This post was about my portfolio and I KNOW this market has what many are looking for and this IS the platform to share such and it’s encouraged to do so. (Many people thank me for sharing such intimate details when many other would hide/hoard such)

Since it sounds like you’re referencing my real estate team - We’ve closed 275 deals so far this year and we’ve had 100% 5 star reviews (many repeat clients who have built entire portfolios and even quit their full time W2 jobs because they’ve experienced the same thing that I’ve referenced above).

The Detroit area has been ranked as the #1 cash flowing market in the nation by multiple sources multiple times. So YES, it is easier and the “easiest” place to find “good deals” in the perspective of what most investors would consider such.

We don’t buy the cheapest properties and we do SO MUCH to talk to clients about DO’s and DONT’S for investing. Perhaps its the insane amount of support and resources we supply clients with that helps them find similar success.

I don’t find it right the assumptions and accusations you’re making of what I/we do and don’t do and that is why I’m standing so firm.

When you have the #1 (ranked by sources other than me) cash flowing market in the country, and someone who has refined the formula of success within - I stand behind it being fair to say that compared to everywhere else, it is much easier to find a “good deal”.