Investment Summary:
We closed on this property on 2025-03-31 with a tenant who was paying $800 a month. This property was under property management through our trusted local partner, Own It Detroit – Mutual Property Management since 2018. The renter agreed to a $100 rent increase after closing, and in exchange, we offered some CapEx updates in the kitchen and the bathroom.
Zillow has the property valued at $80,700 in September 2025; however, based on the property’s internal condition, we have given it a more conservative internal valuation of $70,000. For reference, this area’s average property values are above $83,000 today.
The equity we gained is about 23%, which is an extraordinary outcome, based on the fact that we started cash flowing from day one, with no downtime.
The simple return on capital on this property (pending property tax revisions) will start at an annualized 12.7%.
Property Overview
- Purchase Price: $47,000
- Estimated After Repair Value (ARV): $70,000
- Original CapEx (Capital Expenditure): $10,000
- Current Rent: $800/month
- Projected Rent: $1,000/month
- Square Footage: 1,066 sq ft
- Year Built: 1942
- Lot Size: 40 x 128 ft
- Property Taxes (2024): $1,453.22
- Zoning: R1 (Residential)
Neighborhood Analysis
- Location: Mohican-Regent neighborhood
- A fantastic location close to the 8 Mile Road, that traditionally divides the Detroit properties from its suburban neighbors.
- Close to suburban amenities such as the Aldi Supermarket (1 min), Home Depot (6 mins) and Lowe’s (7 mins), and numerous restaurants alongside the 8 Mile and Gratiot Road.
- Sits on a quiet, mostly brick street.
- Market Insights: The Zillow Home Values Index shows the Mohican Regent’s average home prices to be around $83,000, and the prices appreciated 4.4% YOY as of September 2025. The neighborhood is not only close to 8 Mile toward Eastpointe, but also less than 20 minutes’ away from Detroit’s affluent neighbors such as Grosse Pointe where even more lifestyle choices are accessible.
Comparable Sales
- 13679 BRINGARD Drive Detroit, MI 48205-1155, sold for $76,000 on Mar 20, 2025. $71 per sqft would put Subject Property at $74,000.
- 14046 EASTBURN Street Detroit, MI 48205-1250, sold for $86,000 on Sep 6, 2024. $76 per sqft would put Subject Property at $81,000. We are adjusting for the property’s conditions with deferred maintenance.
Final Takeaways
The incredible leads that our trusted partner, Own It Detroit – Mutual Trust Management LLC, allows us to tap into truly gives us an edge in every acquisition. When we acquire vacant properties, we can lean into the expertise of our partner construction company, AZA Management. to create equity. However, with a vacant value add acquisition, there is always down time, even a short one.
When properties with loyal tenants can be purchased for a discount, there is cash flow from day one. So when we can safely assume there is 25% equity on a property that kept paying for itself, this is truly a win strategy that saves us the biggest resource of all; time.
To be clear, this is not always the safest strategy for a typical fund.
Firstly, the house must be bought as-is, with limited opportunity to perform a full inspection. Secondly, many investors are not confident in vetting the integrity of a pre-existing tenant relationship and may prefer to start a fresh one.
However, we at Mutual Trust Management Advisors have the advantage of knowing that one of its managing partners, Mousa Ahmad — a veteran property manager and broker — will personally evaluate both the home and the tenant before closing.
The underwriting on this property was especialy smooth, as our property managers had been managing the property since 2018.