All Forum Posts by: Marisa R.

Hi All

Just wanted to share another little sweet deal, this is a buy and hold, access equity, rinse and repeat.

Advantages are that I get to continue growing my capital as this neighbourhood is hot. Problem is trying to find another at this price.... just keep searching I guess.

This property was purchased in July 2017 for $72,000 in July 2018 I had a bank valuation of $200,000. 

Today, I expect it to be worth over $200,000. As we know bank valuations can be a tad conservative. 

So why flip this one when I can enjoy ongoing growth, I access equity, continue holding a solid property, with a solid tenant and solid rent.

I know many will poo poo Detroit market, but as you can see there are deals to be had if you know how to find them.

Here are the numbers

Rent- $1250 (100% Section 8 voucher)

Bank Valued - 200K (2018 July)

Rehab - $10,500

Purchase - $72,000 (mid 2017)

Address: 17385 Warrington - University District

https://www.estately.com/listings/info/17385-warri...

I did this in Altanta in 2011, but with $500,000

I still hold these properties today for cash flow

What did I do.  

I had $500,000 (cash) and purchased 10 large SFH. This is when you could pick up foreclosures for as little as $35,000

Today each property rents on average for around $1400 per month

Not to mention that these houses are now worth on average anywhere from $150,000-180,000 (each). So my initial investment of $500,000 capital has now grown to  approximately $1500000+

Gross return - $201600 pa

Net return - $120,960 pa

2018 - rinse and repeat... I am now picking up bargains in Detroit, Michegan for around $35-50,000 for cash flow and appreciation.

I have a motto about investing and ......... its not time in the market...... ITS TIMING THE MARKET that counts.

A couple here....

Manage risk/debt, make sure you don't over extend,  especially if interest rates are rising.

Always understand market conditions, if its rising you have a much better chance of making money

Its all about the numbers, don't get emotional

Understand your product, what sells, target this market

Network with successful investors, never underestimate the power of networking

Yes, possible but need capital

This with buying in an appreciating market and add value, is like investing on steroids.

Its simple for me....

Before I go ahead with any rehab project, I just need to know whether the numbers stack up.

I would a minimum of 20% net profit in the deal to go ahead.

I start with every cost ie buying, rehab, finance, insurance.

Another consideration is the time frame of the project, if blows out so will the holding/finance costs

@Chris Barr

Hey Chris 

Like you list, I am also looking at Bagley, Aviation Sub, Rouge Park

Detroit is hotting up, good time for flips. But loving the cash flow.

Here is my post on my $7000 rehab.

https://www.biggerpockets.com/forums/311/topics/62...

I also just closed on a property/foreclosure  18961 Cherrylawn Bagley

The idea with this is to hold as its very strong market and then do a full rehab and perhaps flip in 12-18 months time. End value for this type of product is around $150,000, dependent on quality of rehab.

@Richard Sherman

Thanks Richard, working hard at increasing my portfolio and my cash flow

@Roberto Moita

Hi Roberto

I am out of State investing in Detroit at the moment, wont be for everyone.

But funny enough this market is starting to take off and I dont know where in USA you will get these prices/returns. Big business is back in town.

Have a search you will see some of my deals I have purchased, I am also flipping 2 properties.

All the best

Its really dependent on the mentor.  Its kind of like this... you don't know, what you don't know. So how would you know whether the advice is correct.

Personally I think investors should take control of their own destiny.

I think the power of networking can never be underestimated. Learn from those who have a track record, by this I mean people/investors who have walked the walk, talked the talk. Piggy back off successful investors and as many as you can find.

But don't forget to give back, don't be a taker, this way you will reap the rewards 

@Skylar Dejesus

Fortune favors the bold  - love your work