The Land Bank and Land Trust properties in Detroit can look tempting because of the low prices, but in reality, the rehab costs can be pretty steep, sometimes higher than expected, especially with older homes needing full systems, roofs, and city inspections.If you’re considering BRRRR in Detroit, it’s definitely doable, but you’ll want a solid local team (contractor, property manager, and someone who really understands city compliance).We’ve seen many investors start there and later shift toward turnkey properties, which already come renovated and rented, still in Detroit, but with way fewer surprises and strong cash flow.We work with several out-of-state investors who prefer that route since it gives them reliable returns without managing heavy rehabs.Happy to share a few insights on what’s been working best in the Detroit market if you’d like!

Imagine the roof leaks.

If any major systems (roofs, plumbing, HVAC) are due, you may want to pad that line item slightly. 

Do you have the reserves for a new foundation, roof or HVAC system the second or third month of ownership? 

The portfolio has been family-owned and operated for decades, and they've spent the last 2+ years gearing up to sell it by investing in CapEx items like the roofs, boilers, and more. 

The roof needed to be replaced.

First month is drawings, permits, and demoMonths 2-4 are construction: HVAC, plumbing, electrical, paint, trim, flooring, kitchens, baths, likely roof and exterior paint/sidingFinal week is punchlist, landscaping cleanup, listing prepComing soon to pending is typically about a week30 days to close

I think OP was speaking about the amount of payout insurance gave, vs the vendor quotes to make full repair, in the time there was a thing that happened, say hail damage to a roof and the roof need replacement. 

Theysaid that our 2 year old roof needs replacing, our one year old HVACis improperly installed, and that our perfectly working septic systemalso needed to be replaced along with lots of other newer items.I guess they wanted to knock the price down $50,000 or maybe a lotmore. ....

Most roofing/siding companies pushing for James hardie(30k not including painting), do you all know what would be a reasonable price?