All Forum Posts by: Michelle Hagewood

I'm considering a 2 bed/1 bath home on water (on a canal that leads into beautiful lake). Needs updates but priced at $199k now. Comps for a 3 bed/1 bath with a bigger yard and completely updated is $270k. Neighborhood also has lots of large updated gorgeous lake homes so this is the smallest one (has a neighboring home with a 1/1 and other side 2/1). Want to ask $170k, add some landscaping and cosmetic updates that may hover around 10k total. Rent out for $1700/mo. Rental comps for just a 2 bed/1 in area are anywhere from $1400-$1600 but not on waterfront. This would be first investment and if I manage it myself (which I'm scared to do) have a CoC return of 5.67%. If I get a company to manage maybe could raise rent to cover that cost since it would be marketed more wide

In Oakland County MI and market is very hard to find decent homes following the 1% rule right now in general. 

Just want some insight if this is a wise plan of action. I feel good with the numbers but still some unknowns (like will I find renters??). 

guess along with some cash flow this home would have value being on water…which is not easy to find so value in land alone. 

I'm seeking my first SFH investment in the Oakland country area (Michigan ).

I'm wondering if others in this market are content with analyzing 5% CoC or cap rate deals? I've put offers down so far in three properties and they have not been accepted when I have set my budget at where I can have positive cash flow and at least a 5% CoC return.

I am a cash buyer as well and trying to locate the markets where the 1% rule applies…and those markets seem to be the most at risk ones (Detroit, Pontiac, Flint). Not where I want to do my first investment.

Any tips on or explanation on CoC return or should I look more at cap rate since I'm investing cash?

Currently I'm considering a fixer in Lake Orion well below market value that needs work. And even with work and conservative budget projections (including high non homestead taxes) it's reaching the 4%-5% CoC return. But fixing it will bring tons of equity.

appreciate any and all kind :-) feedback. I’m a newbie. Don’t be too hard on me!

I'm finding it very hard to locate under market value homes to do a rehab and hold for profitable rentals. Considering Warren right now as well as Pontiac. Anyone have opinions on parts of Pontiac that would be good for buy/hold rental portfolio? I'm concerned on area/crime.