All Forum Posts by: Joe Hammel

@Marshall Leipprandt

Hi Marshall,

Happy to provide “more” info, but I disagree that I “should have” done so, as you claim.

I was summarizing and being concise. I can talk all day about the specifics of these deals, just didn’t feel like typing all day and I don’t think most people feel like reading all day.

There’s definitely a degree of skill that goes into investing..so I agree, not everyone is able to execute this.

We have hundreds of clients succeeding with a similar formula and I think it’s likely because of the guidance we provide and how we have narrowed down our criteria and markets.

My deals provide a ton of cash flow, high ROI, and relatively low maint. Period. They work. You can't deny me that. Yes, I budget for maint, capex, vacancy, and all projected expenses and I do not count that towards cash flow. I personally subcontract my work and recently started a handyman business to help myself and clients with rehabs. That has been one of the best decisions I've ever made. Depends on the property for landscaping. Most* SFH the tenant does all, and most* MF properties I/owner takes cares of landscaping and snow. Again, always budgeted and not counted as cash flow.

Not sure what to tell you if you just haven’t been able to execute it. I guess I’m probably taking for granted how refined our process is.

If you’re looking to buy in the market, happy to share more details of these deals and how we analyze them and how they look after a few years.

@Shirley Cheung

Hi Shirley, yes, I seen you reached out on our website, we will be in touch in the morning!

 Hi Daniel,

What I mean by "bad reputation comes from OOS investors wanting $20k D market properties":

This comes from when you hear people talking (including people on the BP podcast sometimes) and they talk about "Detroit" they might say "that's a bad market to invest in" "tenants don't pay" etc...

That bad reputation comes largely from inexperienced (often times OOS) investors being attracted to the number of houses for < $50k. However, these "cheap" houses are where the majority of the bad experiences come from because usually for a house to be worth that cheap it is in horrible condition or it's in a location where many tenants do not pay rent. 

So people get caught trying to buy "cheap" and they get what they pay for.

HOWEVER, not all of Michigan is Detroit lol. If you go into the suburbs (where my entire portfolio is) and pay a little more $80k-$130k you still find some of the best ROI and cash flow in the country but the houses are in decent condition and tenants pay.

Logical pm @Drew Sygit and FIRE Realty Team

@Justin Molzhon

My personal portfolio is here and over the course of the last 3 years my average price point is around $100k, cash flow around $400/door, appreciation has been 15%+. All my tenants pay (18 doors)

It’s just impossible to argue that it’s anything but fantastic.

Don’t get caught in the $20k property and hope the location explodes. This is where the horror stories come from and money is lost.

Do buy solid cash flowing investments in good surrounding areas and the current cash flow will carry them through a strong future.

After thousands of experiences..Here is what we see work the best.

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, mortgage, Amazon fulfillment, and more jobs.

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

 yes, it's been ranked multiple times as such. BP on the market episode: 10 "High Cash Flow" Real Estate Markets of 2022

You can't find better (average) cash flow in any other market. So this is why you can find same/better cash flow in 'higher grade' markets here. My entire portfolio is here and performs extremely well and tenants pay.

You could buy 5-6 REALLY good investment properties (financed) in metro Detroit with that amount of cash and you wouldn't regret it. 

These are the properties we see investors have the most success with (some quitting their day jobs from the cash flow).

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, mortgage, Amazon fulfillment, and more jobs.

The bad reputation comes from OOS investors wanting $20k D market properties where the condition isn't what it appeared to be and/or the tenants never pay rent. So might look good on paper..but doesn't matter if you never collect rent. 

Definitely will get lots of votes for RE here lol. No better place to put your money. And you already found the best ROI/Cash flow market in the country, so i'd recommend keep going and you will like where it gets you.

Sounds like you're in a great position to make it all happen. We've seen lots of investors achieve FIRE in Metro Detroit, hence the name ;)

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, mortgage, Amazon fulfillment, and more jobs.

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

 Thanks Sherri!