All Forum Posts by: Marisa R.

@Mary M.

Hey Mary

This property will pretty much break even in terms of cash flow, perhaps $1000 in front pa, peanuts really.

What are you missing??  The BIG PICTURE....

The fact that I made money from buying well, the bank valued it at $200K that is $125K equity that I can use to grow capital and cash flow. That is $125K that I did not have prior to purchasing this property.

Not all deals are equal, I am buying a mixture of cash cows and properties for appreciation. 

Its also the power of leverage, for example I have 11 properties now in Detroit. Some are highly cash flowing and I have posted a few on BP if you are interested to viewing. 

The strategy is about growing a portfolio of properties in a rising market, sell down in 3 years time and take some profits off the table.

@Brian Garrett

@Brian Garrett

Hi Brian

OK, I did read something about the BRRRR....

Thanks

@Andrew Flora

Thank you Andrew, for a minute I thought I was going insane..... LOL

That is exactly right, the value is irrelevant at this point in time as I am not selling and I can refinance at $200K end value.  

For the purpose of establishing whether this market is rising, I would like to flag this thread and review values.

@Derek V.

Thanks Derek, appreciate this... and thanks for your kind words.

As they say..... there are many ways to skin a cat.......

What the bank has determined as its true value for me it what matters, I am not selling. 

Accessing the equity is a good option, it has allowed me to move on and buy more properties.  

The idea is to continue growing a portfolio of properties with strong cash flow.

I am focusing on increasing capital at the same time.

@Leo Poon

Hi Leo

Thanks for sharing this information.

I guess as investors we need to compare apples with apples, are the properties you mentioned cheaper because they need more extensive rehab? on  a micro level,  location not necessarily as desirable ?Are these warranty deeds or quit deeds? Do they have back taxes etc.

As you can see there are many moving parts here.

As far as crime rates goes, yes I understand the stats, but I also understand that there are many neighborhoods in Detroit that are gentrifying and its matter of finding the gems in the rough and firing the trigger..... pardon the pun

I did this in Atlanta, I purchased in neighborhoods that were considered rough and undesirable at the time for around $35,000 today this SFH are worth $185,000 each and renting at on average $1400 pm. still hold these for income

I am not going to argue with the bank and their valuation, if they value it at $200,000 there must be evidence of sales, as they are looking at recent sales comps including sq ft, land component etc.

I am a simple person, I target markets that are rising, and look at value. If it makes sense then I am in.

I cant predict the future, however I would love to review this thread in 6 months time to see what has happened and where the values/sales sit including the rental returns. 

I am Not here to convince anyone to jump into this market, I am just sharing my experience and I think its great to have a constructive conversation, worts and all.

@Thomas S.

OK, So how do you explain the sales comps I posted? Surely they are not all mistakes.

@Jack B.

Dont know much about Seattle ?? 

Yes, the market is rising in certain pockets of Detroit.  As you can imagine its a different price point, many investors from out of State and foreign buyers now jumping in.

Its all about cash flow for many investors.... for me..... its about both.   Lets talk in 12 months and I will be happy to review this thread and also property values in this neighborhood

@Mike H.

I guess there are a number of options here, accessing the equity, not necessarily selling today, as bank valuation has come in at $200,000. 

The plan would be to hold this one as its a rising market. 

@Jay Hinrichs

Hi Jay

Yes I get your point. There is a mix I think hence the higher values. ???

Here are some comps of similar properties within close proximity.

This one on the same Street sold for $236,000 another at $192,500

https://www.zillow.com/homedetails/18065-Warringto...

My goal for 2019 is to continue growing capital and income streams.

Travel to China, New Zealand..... First class all the way....LOL