All Forum Posts by: Marisa R.

So I purchased at $42,000 and $64,000. We are now seeing comparable sales at round $140,000+, very much dependent on location and size of the property.

My view is that University District next door is selling for over $220,000 and buyers, homeowners are priced out and, its the ripple effect, investors, home buyers jumping into the next area which has a significantly lower median house price.

This one sold 10 months ago, however, I expect it to be worth more today, but below are some comps.

Interesting times in Detroit. If you flip you want to make sure there is plenty of fat in the game and buyers are at the right price point. I don't believe Bagley is a hold now as prices have soared, unless you have deep pockets, I guess that strategy is hold, its an appreciating market so it will be worth more in 18 months? The rents around $1000-1100? dependent on condition, location and size

https://www.estately.com/listings/info/18601-cherr...

3 Votes

Originally posted by @Jonathan R.:

I’m not sure why anyone is surprised that this strategy has come under attack (I doubt anyone really is). In almost every string on investing in low income areas or buying sub 30k properties, investors are met with skepticism and uproar. I am glad BP put this story on the podcast, they are few and far between. I’d like to see more of it. I think the stories that come out of these discussions are some of the most interesting stories in the business. Sure real estate is mostly boring, and that can be a good thing, it makes for a good investment, but, some of us are less risk averse and thrive in riskier asset classes. You’d have to check my pulse if my strategy was to buy B class assets with 20% down again and again and again. I’d rather improve the economy from the inside out, at least for now. Beware of shiny object syndrome, if what you are doing is working, keep grinding. There are many ways to make money in real estate in concentrated efforts.

Well said

The thing is no one needs to justify what they buy, especially if its working for them

Its interesting, but as investors we have choice, we can take a bet each way. Mix it with A, B, C and buy in more than one market. Tweak it a little to make it work

From my research, and evidence and from my buys, Detroit is coming back in a big way. That’s the easy part to work out

Getting the asset to perform requires more than just knowing where and what to buy

2 Votes

Originally posted by @Jeff S.:

@Ashley Hamilton what you have here is a once in a lifetime opportunity that you have jumped on. Things are great for you so be careful. If you stay free and clear you can not lose. If you start mortgaging your existing properties to buy more you can have problems when the economy softens. You have cash flow just keep reinvesting it and lay low on the loans. The biggest apartment owner in my city of Portland said never borrow on one to buy another. In other words keep your free and clear ones free and clear IMO.

Totally agree with your view on debt

My purchases have all been cash buys

But to be perfectly honest you need to be a cash buyer in Detroit market as there is too much competition for the good deals

More important in Detroit market is getting your assets stabilised snd performing

6 Votes

Whatsapp works so well:)

0 Votes

Originally posted by @Ashley Hamilton:

Wow thanks for your opinion but that's really only your opinion, it's good to see that we support each other here in Detroit . But all your assumptions about me is wrong and my investment strategies. Everybody have their own strategies and techniques but one Shouldn't Judge another person or assumed another person strategy isn't sufficient. I'm doing really well actually better than most so I think I'll continue to follow my own advice.

As they say Ashley.......

Opinions are like belly buttons everyone’s got one

I listened to your podcast.... well done on great success

I also purchaser 10 properties in Detroit, love what I am seeing and the cashflow

21 Votes

Originally posted by @Travis Biziorek:

Originally posted by @Christian Hutchinson:

Originally posted by @Travis Biziorek:

Originally posted by @Marisa R.:

Originally posted by @Todd Douglas:

@Marisa R. Morningside is growing indeed. I am anticipating the growth of the surrounding areas right outside of both neighborhoods values are still tremendously low(Chandler Park Dr, etc.) My buyers are hesitant when it comes to purchasing in those areas.

I think this is called the ripple effect. Something has to give, its a bit like University District where prices are over $200,000 and there is high demand, neighbouring areas such as Bagley benefit from this as it is a lower price point where buyers who cant afford University D will just into the next suburb/area.. the ripple effect.

Absolutely. I talk about this with friends all the time. You can look at it from a micro level (neighborhoods) or macro one (cities). From a macro perspective you see it in the suburbs with folks getting priced out of certain areas (like Troy), moving to places like Royal Oak and Ferndale until those get too pricey, and now moving to areas like Hazel park and Hamtramck.

On the other side you have downtown seeing massive corporate investment, and rents/housing prices are rising quickly. IMO this creates an interesting effect where people who want to live closer to downtown are getting pushed increasingly further out to other Detroit neighborhoods while you have people who want to be in the suburbs who will (again, IMO) eventually start buying into Detroit neighborhoods.

I believe it's not a matter of if this will happen but when.

That said, there are many areas in Detroit that are going to require serious investment, likely from the corporate or government side of things. There's still a lot that needs to be done. But right now there seems to be a mental barrier at the $1,000/month rent price unless you're downtown or in a niche area like the University District. I think we're going to see this change soon and the $1,000+ monthly rents are going to be common.

If you know what I mean your "average" Detroiter isn't isolated to just a few areas. Most people relocating to Detroit, won't consider many neighborhoods.

I had "Detroiters" turning their nose up at living in Brush Park in a 2 bedroom for $1000/mo in 2014. Today, that price is $800 under market. Right now in the North End non-Detroiters are buying homes, or renters are moving into renovated places. price tag for a 2bedroom is $1100, sounds pricey but if you are South of I-94 that number is about 1300+ and increases more south of Ferry, Warren, Forest, Canfield, Alexedrine, and Mack about a $100 at each street. Then "Detroiters" are priced out.

Detroiters view when a neighborhood is transitioning that they could rent a house in a place off 7 Mile for under $1000. So why would they pay double that for an apartment. Or a house. They view it its a 1200 sq ft house in Detroit and its all the same basically. New-comers or relocaters, they view it as the closer you are to the action bars, universities, jobs, etc the property is worth more.

This is what I was getting at. True Detroiters are getting squeezed by both sides. Downtown continues to get pricier and those higher prices are pushing outward. Detroit suburbs continue to get pricier and those prices are pushing inward.

There seems to be a psychological barrier at the $1,000/mo mark for SFHs near 7 and 8 Mile. I think we'll see that break in the next year or two.

My question is: what happens to true Detroiters as it becomes increasingly difficult to find the rent figures they've been accustomed to for years?

Good point.

How long is a piece of string?

It will be dependent on many factors. For me I am following this market closely and there is pots of money coming into this State. Big players are throwing money this way, manufacturing is on the up and up...billions

What does this mean? more jobs, prosperity? If rents increase I expect that this will also happen to wages?

You will also see people from other States move into Detroit because they can see opportunity for affordable housing and perhaps a better lifestyle for families

People can live in the past and poo poo Detroit till the cows come home, but those paying attention can make money riding the new wave.

I have said it before Detroit is on the cusp of a comeback and I wish I had jumped in earlier as many of the markets I like are already too expensive now. Just have to find the next best area that is gentrifying.

1 Vote

Originally posted by @Alessandra Almeyda:

Looking for someone who can give me directions

to get good reliable info in detroit market. I heard a podcast with ashley and i know she is bussy. Im only looking for where to begin in that market. My current market is Miami and im looking for out of state great deals.

Any help helps!

Thanx to all!

Alessandra

I started a thread

Detroit the come back kid

This may be helpful

I have purchased 10 sfh in Detroit which all required rehabs and am now on the hunt again

Detroit is definately on the move, keep researching and networking

0 Votes

Originally posted by @Jordan Sinclair:

PM's in Australia can also suck. One useless PM brought her boyfriend and their fast food along to an inspection. Not a big deal but not very professional either. She was fired by the company shortly afterwards...

What made the PM give you notice Marisa?

The PM (owner of the business) gave me notice, because I queried why she did not have a set of keys for my property.....

She has lost all her staff now and I don't believe she should be operating. as she is not capable of providing a good service

0 Votes

Originally posted by @Todd Douglas:

0 Votes

Originally posted by @Brad Larsen:

@Marisa R. It would be helpful for you to read this article on what Property Managers would classify investors. I'm not saying you are in any category, but a little self-reflection may help in your dealings with US based PM's. Also, I have been to Australia and spoken at their PM conferences - there is a difference. But, for you to make that blanket statement is unfair to our industry and disrespects our country.

https://www.biggerpockets.com/forums/52/topics/402958-investors---are-you-a-c-class-landlord?page=1

Definitely not disrespecting USA, one of my favourite countries to travel and invest. Love the entrepreneurial spirit, we lack this in Australia. I apologise if I offended, not my intension whatsoever

Sharing my experiences on property management the good, bad and ugly is why we come onto forums so we can learn from others.

0 Votes

All Forum Posts by: Marisa R.

Marisa R. has started 68 posts and replied 570 times.

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