Acquisition Summary:
Property Detail: 3BR 1BA Brick Ranch
Acquisition Date: August 30, 2024
Acquisition Price: $45,000
Capital Expenditures (CapEx): $30,000
Potential Rent: $1,000
After Repair Value (ARV): 95,000 (conservative)
Some of the challenges that Detroit residents face are the lack of suburban comforts, such as access to good public schools and fresh food supermarkets. While the City of Detroit is nowhere near a food desert, the MTAM acquisitions team always looks for prime areas with better access to resident amenities.
This property is located near 8 Mile Road, just south of the Charter Township of Royal Oak.
Royal Oak is a trendy city with affluent residents enjoying a vibrant life. The proximity of the property to Royal Oak allows future residents of the property to enjoy the vibrant city life available to their suburban neighbors. The acquisition team believes that the location of this property gives it good potential for equity growth into the 5-year horizon of the Fund.
=======Update on October 1, 2025
This property’s total cost basis ended up being $$83,547. This number came in marginally above the original projected total budgeted, because it includes the cost of money as well as utilities during its vacant period.
The days till lease-up was 163 days. Our underwriting goals are typically 180 days. The rents came in at $1,125, higher than projected.
Zestimate in September 15 showed as $115,300. This is also higher than our original hopes of $95,000. Its first year simple cash-on-cash return is 12%. To be clear, after an owner change, property taxes are likely to raise, likely bringing down the net returns slightly lower. This should offset as rents catch up. All in all, a typical MTMA success story.