All Forum Posts by: Marisa R.

I'm considering growing my real estate investing career using the BRRRR strategy. I've started the process to get a $60K HELOC from equity in my first investment property. My question is...is that enough to start the BRRRR process and invest/fix up a property in an area that wouldn't give me a headache?

Based off of my math, below are the numbers. Would they work? Is this enough to get started? If so where?

I've done some homework in Cleveland and Detroit, but I'm still unsure of the rehab and ARVs in these areas...I live in CA:

Property Value: $280K

Mortgage #1: 165K

MAX HELOC (based off Pen-Fed 80% CLTV): $60K

Property purchase price - $25k-$35k

Rehab costs - $23k - $35k

Thanks everyone! Excited to start this conversation. I hope it's engaging and helpful for others as well.

You may find this interesting, a thread I started

https://www.biggerpockets.com/search?utf8=%E2%9C%93&term=detroit+the+come+back+kid

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If its a good area and cash flowing then Just move forward and secure a good tenant. Don't let one bad experience put you off. Nature of the beast, I am sure most property investors have had at least one bad experience, its how you deal with it that matters.

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A bidding war on this one in Bagley

Good location, but burnt out house, beggars cant be choosers.. just not a lot around in right location

https://www.trulia.com/p/mi/detroit/18482-stoepel-...

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Originally posted by @Michael P.:

Rust belt will turn around eventually but you’ll have to hold through the next recession plus another 5-10 years. But why not hold if it throws off good cash.

I have purchased 10 in Detroit in last 12 months, yes cashflow is good. Growth is happening, some areas are gentrifying. Bagley, East English Village, Redford, Fitgerald..... to name a few

I am watching prices rise

But let me assure you its not a walk in the park, you need to get it right for assets to perform

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Originally posted by @Travis Biziorek:

Purcahsing for $30k-$50k in A/B neighborhoods, putting <$10k in and selling it for $80k-$130k?!

I had a dream like that the other week too.

I'm focused on buy and hold in Detroit, generally looking for homes that will hit the 2% rule in the $40k-$50k range. These homes generally need $5-$10k of work just to get fully rent ready/compliant. And trust me, they aren't worth $80k-$130k once done. They're just up to market for the area, maybe $50k-$60k.

You are too funny

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Originally posted by @Shane Short:

Hello everyone, I'm in search of good Turnkey rental companies that sell properties in Portland, OR and Detroit, MI. Preferably referrals for companies you've personally worked with and have a good history with.

Regards,

Been buying in Detroit

I recommend buying distressed properties in this market and adding value. This is what I am doing, equity upfront and property rental yields of around 15% net, dependent on deal

Takes a little more time to bed them but better outcome in my opinion

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OK, update on this property

Been rented out now for some time great tenant, just shows dont believe all the negative news about Detroit

15.5% net returns

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You could phone local building contractors to find out build costs per sq foot and if you can buy for at leadt 20% less per sq foot its a possible buy?

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So we know we can definitely source cash cows in Detroit, but what about appreciation?

Anyone care to share the areas/zip codes they are buying into for appreciation?

Anyone buying multi units?

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Originally posted by @Twana Rasoul:

So I'm in the process of trying to sell my Single Family Homes in the Midwest (Springfield IL) in order to purchase another property here in San Diego (occupied 2-4) unit that will be around $0 cashflow at best, assuming all units rented, including the one I'd be occupying.

seems like I'm doing the exact opposite of what investors on here are doing. Feels like everyone else is avoiding prime locations (Los Angeles, San Jose, Seattle, New York, etc.) with no cashflow and targeting cashflow locations in the Midwest, South, etc.

is anyone else doing this by any chance? or am I just crazy and on this island alone?

Yes, crazy if San Diego is at peak, property is all about cycles, winners and losers. If you jump into a market which has already seen massive growth and you are not cash flowing.... this is the easiest way to lose money.

Just because San Diego is blue chip does not mean it is bullet proof.

As far as your property in mid west goes, if it is not a performing asset I would be selling it. If you have it bedded and its cashflowing then you have choices

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All Forum Posts by: Marisa R.

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

Post: BRRRR with $60K cash

Post: Bad Apple in my First Rental Property..

Post: Detroit the Come Back Kid

Post: Out of State Investing and Markets

Post: Newbie in Detroit. What's Going on Here??

Post: Turnkey rental companies? (Portland, OR and Detroit, MI)

Post: My $7,000 Rental Rehab

Post: How To Determine Price Per Square Foot?

Post: Detroit - Zip Codes for Appeciation

Post: Selling Cashflowing Homes in Midwest for No-Cashflow in San Diego