SFR acquisitions

Investment Summary:

The simple ROI on this property is conservatively well above 7%, factoring for updated winter taxes of 2025.  The Team was able to save approximately 20% on the original cost to repair.  We estimate a conservative 30% equity growth out of the project.

Property Overview

Address: 19352 Westmoreland Rd, Detroit, MI 48219

• Purchase Price: $65,000
• Estimated After Repair Value (ARV): $135,000
• CapEx (Capital Expenditure): $45,000
• Rent Potential: $1,200/month
• Square Footage: 1,029 sqft
• Year Built: 1949
• Lot Size: 40 x 112ft
• Property Taxes (2024): $2,402.23
• Zoning: R1 (Residential)

Neighborhood Analysis

• Location: O’Hair Park neighborhood
• Close to the 8 Mile Road that divides Detroit with its suburb Southfield, offering excellent access to many supermakets such as the walking distance Appollo, Save A Lot, Food Land and even Sam’s Club.
• Sits on a quite all brick road, the golden standard for Detroit housing
• Market Insights: The Zillow Home Values Index squarely placed this zip code to have appreciated over 6% YOY
• Proximity to amenities such as hospitals, pharmacies and restaurants

• 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

• Stabilized Rent Potential: Rental increase to $1,200/month is expected after Section 8 adjustment.
• Value Growth: Area appreciation and low purchase price support ARV estimate of $110,000.
• Strategic Location: Proximity to key amenities and major employment hubs.

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