All Forum Posts by: Marisa R.

This is a side issue, however its great to finance deals, but beware now that interest rates are rising investors need to make sure they can service debt moving forward. 

Your cash flowing properties can turn negative/in the red very quickly if you are not managing debt.

@Joseph M.

Detroit

This is absolutely NOT retail price, you would be perhaps looking at closer to $75,000-80,000+?

I do not buy turnkey or retail because I wont get these great numbers.  I need cash flow from day 1.

I am not against investors buying retail or turnkey, however if I can buy significantly under market value I am ahead of the crowd. 

At the moment my strategy in this market is buy and hold because the Detroit market is rising. 

From my research I expect these properties to be worth more in 12 months time.

I am planning to buy 40 over the next 12-18 months, stock is shrinking so hopefully this can be done. 

@John Lambert

I provided no labor, this is the contractors price. 

I know hard to believe right..... on average my rehabs in Detroit are costing me anywhere from $3000-6000. This was an expensive one.

I have another that I close on next week I would be expecting $8000. They have already given me an idea and this one needs replacement of window frames. This one will be a potential flip as its in Bagley and end values here are hitting $150,000, I purchased this one for $61,000

@Shawn Coverdell

Lots of talk about market slowing down??? Yes I hear this, but its really noise to me.

What I am seeing in Detroit is anything but..... however, you must buy the right product, at the right price and then keep your costs down.

I am cash flow positive from day one. 

I have a $200,000 income pa from my rentals and just increasing my base. Once you know what to do buy and how to do .... .its just a matter of rinsing and repeating.

@Michael Cross

Hey Michael

I actually made a mistake, in a very good way............this rehab came in at $5100. I have another 3 rehabs happening at the same time, so I got confused.   Its Detroit, B Neighborhood. This property did not hit the market we secured it prior, cash offer.

I have got the rehab costs refined, there are most certainly ways to reduce costs

Here is the list of repairs/rehab

1.Scrape and painting the entire house and repair cracked walls
2. Complete trash out of entire home and garage
3. Back upstairs Porch repaired
4. Paint basement walls and floors
5. Close off outside storm drains
6. Put up backyard fence to separate property
7. Basement stairs repair
8. Plumbing inspection
9. Boiler inspection
10. Electrical inspection
11. Replace tile in kitchen
12. Pull up old carpet
13. Sand and refinish hardwood floors
14. HwT inspection
15. Snake drains
17. Fix broken light fixtures
18. Replace missing glove 

Hi Everyone

This is my $7000 rehab, I call it my rental rehab not retail rehab where perhaps a higher standard is required when selling.

This home is around 1450 sq ft. 

I purchased this for $36,000 and rent is around $950-1000 pm

@Joe Kemnitz

Hi Joe

I am playing in Detroit at the moment, a mixture of buy and holds and flips.

You can search some of my deals if interested in viewing what I am doing.

Happy to share my insights

There are markets within markets, not all markets are doing the same thing at the same time.

So what are the zip codes you are talking about that are tanking??

I am seeing the opposite where I am buying.

At the end of the day regardless as an investor you must always mitigate the risk, one way is to keep leverage at a manageable level, where you can service debt, in particular if interest rates start to rise.

Buy and sell in same markets, if you have made money, take some profits off the table, reduce debt and risk. No one ever went broke taking a profit.

Also pay attention to market sentiment where you are investing, its very important as this can turn markets... No need to panic at the moment if you are managing risk

@Stossi Tsantilas

Hi 
I am investing in SFH in Detroit.

Regardless of product you buy it will come down to the location/neighbourhood, get this wrong and you will go backwards.

Annual return of 25%+, sounds good, as long as its not smoke and mirrors.

I would want to view the leases, and look at the track record on this particular complex, income, how long tenants have been renting in this property, calibre of the tenants. 

I have steered away from multi units in Detroit because I think it may be higher risk... baby steps for me. So far so good. 

All the best

Why would you tell your banker, unless there would be some advantage/benefit doing so. 

In the first instance I would be getting legal advice.... asap