SFR Acquistion #18 – A Solid Investment in A Brick Area – Rented with Upsides!

Investment Summary: 11653 Sussex
Property Overview
  • Address: 11653 Sussex Street, Detroit, MI 48227
  • Purchase Price: $70,000
  • Estimated After Repair Value (ARV): $110,000
  • CapEx (Capital Expenditure): $15,000 (maximum)
  • Rent Potential: $1,200/month (currently at $950)
  • Square Footage: 1,169 sqft
  • Year Built: 1940
  • Lot Size: 40 x 108 ft (0.099 acres)
  • Property Taxes (2024): $1,822.40
  • Zoning: R1 (Residential
Read More

PRIME VALUE-ADD POTENTIAL IN PALMER PARK: 1000 MERTON, DETROIT, MI 48203

 

1000 Merton is a 20-unit, 70%-occupied multifamily property located near the entrance of Palmer Park, just off McNichols Road.

The property is part of Detroit’s Palmer Park Apartment Buildings Historic District. The area has undergone numerous successful revitalization efforts during the past decade.

The latest development has been created through the contributions of Detroit’s premier entrepreneur-turned-real estate developer, Dan Gilbert.

His efforts brought the annual Rocket Mortgage Classic Golf Tournaments to the Detroit Golf Club within Palmer Park in 2019.

Single residential homes around the Subject Property within Palmer Park are positioned for further
gentrification. The area’s median home values of $360,000 prices competitively alongside its
popular neighbors, Bagley and University District.

The increasing attention that the Palmer Park area has been receiving of late has not been lost on
our Team. We believe that our favorable acquisition price, the strong-value proposition, and the inhouse
construction and management teams can create a lucrative investment opportunity for our
investors for years to come.

Our investors can view the full Investment Thesis once they log in.

SFR Acqusition #16 – 8259 Meyers Street, Growth, Growth, Growth!

We at Mutual Trust Management Advisory LP offer our investors a long term residential real estate investment opportunity with an aggressive outlook as per below.

  1. 8% Annual Preferred Return to our investors.
  2. A Target Total of 10 to 16% Annual Returns
  3. The difference will be split by investors and general partners.

Many real estate investors may wonder, how is this possible, when retail residential purchases at today’s prices can only typically produce a 3 to 4% cash-on-cash return if lucky?

We are here to offer individual investment details of each property that goes into our portfolio in order to show our investors exactly how this is done.

The typical investment thesis is that firstly, we purchase a value-add property and fix it up to create immediate equity growth.  The equity will then keep appreciating at a compounded rate far superior to a typical retail play.

Then, we ascertain that enough cash flow from the rents are available to secure most of the Preferred Returns. While most properties may not start at a cash-on-cash return of 8% and more, we do look for properties that can deliver this goal within a few years’ holding period.

Of course, we employ further tweaks to accommodate detailed portfolio management, however in this article we will keep the framework simple.

Let us take the example of 8259 Meyers Street, a recent proud acquisition.

  • Property Address: 8259 Meyers Street, Detroit, Michigan 48228
  • Acquisition Date: 10/11/2024
  • Acquisition Price: $90,000
  • Capital Expenditures (CapEx): $20,000
  • After Repair Value (ARV): $140,000 (conservatively).
    See Comp 1 A comparable property of similar size, fully renovated and vacant, sold for $169,000.
    See Comp 2 A smaller property requiring a comprehensive cosmetic refresh, sold for $120,000.
    See Comp 3 A smaller property with a long-term tenant and a listing history of $149,999
  • Current Rent: $1,000 per month (projected to increase to $1,200 immediately post-closing).
  • Simple Cash-on-Cash Return Projection: 7%+ after rent increase

 

Read More