All Forum Posts by: Justin Brin

Hey y'all. First investment property under remodel. The home is a 3/1 with 1300 sq ft. The bathroom is large (250sq ft), and we originally had the idea to BRRRR it without touching the bathroom. However, during the remodel, we were given the idea to split the bathroom in 1/2 which would still have the main bath, but also create a master bath as well. The PM suggested we could get another $100-$150 on rent, and were quoted just over 6k for the work. If adding the second bath will add the 6k+ to the appraisal on the refi it would be a no brainer, but can't say with certainty. Does anyone have thoughts/experience on which choice they would take?

Metro Detroit has what 99% of Real Estate Investors want. 

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

I cash flow $100k a year off 20 doors and have built a ton of equity in a short amount of time. 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: 3-10%+ (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 within 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 sub $40,000, D class properties. We don’t buy those. We have found what works and repeat it as much as funds allow. Detroit is known as the highest rent to price ratio in the country…and we’ve found the perfect balance of price/location within the area.

@Andrew Syrios, that doesn't make sense to me because counties wouldn't have anything to do with that. Felonies are serious violations of STATE law and prosecuted in state court. The STATE court would be the one with the records.

In MOST cases evictions are also probably in STATE courts as well, except perhaps some larger cities which might be permitted to handle evictions within their own city court system of some sort.

What I find (In PA) is that criminal and especially civil (evictions etc) ARE properly recorded and available on the STATE courts website but often times not picked up by background checks (mostly the evictions). I wouldn't buy their excuses because I always check my state's court website myself and find things the background check missed. 

I live 35 mins away from the duplex. 

Appreciate the input on the software. How do you accept rent? I want to accept it electronically in a way that prevents partial payments.

It’s in a class c neighborhood

Appreciate all the additional input as well

Take that a little further with job growth, wage growth, and population growth.  At least 1/2 the cities on that list are dying cities.  Can you make money there, probably.  It is a good long term play?  I doubt it.   When some giant % of the houses in places like Flint MI are vacant, I don't think that outcome will be good for many of the investors in that town.

I’m a first time real estate investor under contract to purchase a duplex in the Kansas City mo area. It closes on 11/8 and will be a long term rental. I’ve done a lot of research and think I have a basic handle on everything given that I’m new. I also know I’m bound to make a lot of mistakes. 

im looking for someone with long term rental experience in the area who can give me advice and I can bounce ideas off. For example:

Advice for taking over an existing lease?

Is turbotenant good software for what im trying to do?

Advice for finding a tenant and marketing my listing, etc.

New to BP but looking to get started in my journey to financial freedom. I wanted to create an open discussion for some experienced investors and understand what you would do in my situation. I currently have $40k and own no real estate. What would your strategy be for creating a portfolio of real estate properties?