6190 Harvard Street is a single-family brick home located in Detroit’s East English Village neighborhood.
– Property Address: 6190 Harvard Street, Detroit, Michigan 48224
– Acquisition Date: August 8, 2024
– Purchase Price: $68,000 plus closing and acquisition costs
– Initial Capital Expenditure Budget: $35,000
– Initial After-Repair Value Estimate: $150,000–$155,000
– Initial Rent Estimate: $1,200 per month
6190 Harvard Investment Thesis
The property was acquired as a value-add opportunity in East English Village, an established Detroit neighborhood near Grosse Pointe.
The underwriting focused on three principal factors:
– acquiring the property at a basis that allowed room for renovation;
– improving the physical condition of the home to support rental demand and long-term value;
– stabilizing the property at a market-supported rent.
The property is a brick home, a construction type commonly found throughout this part of Detroit. MTMA’s acquisition approach generally favors durable housing stock where the cost of improvements can be evaluated against comparable properties and expected rental income.
The initial After-Repair Value Estimate target was determined from reviewing a few comparable sales nearby such as
– 16905 CHANDLER PARK Drive Detroit, MI 48224-2078, Closed On: Mar 15, 2024, $150,000
– 6009 BISHOP Street Detroit, MI 48224-3808, Closed On: Apr 30, 2024, $177,000
At acquisition, the team anticipated completing renovations and tenant placement within approximately four to five months.
Renovation and Stabilization
Repairs were completed during 2024, and the property was leased on November 19, 2024 for $1,270 per month, compared with the original underwriting estimate of $1,200 per month.
Performance Update — December 2024
Immediately following completion of the renovation and tenant placement:
– Actual Monthly Rent: $1,270
– Capital Expenditure through tenant placement: Within initial budget
– Updated Internal ARV Estimate: In line with original underwriting
The comparable sales utilized are provided for reference only. They may differ from the subject property in condition, interior features, renovations, size, occupancy, and other characteristics. When the subject property is occupied, its interior condition and features may not be directly comparable to those of vacant properties. When the property is a value-add, the repair quote is a forward projection that may or may not apply. Any value indicated based on these comparable sales is a guidance and should not be considered a definitive valuation across time.
Disclaimer
This article is for educational purposes only and does not constitute investment, legal, or tax advice. It is not an offer to sell or a solicitation to buy securities. Any investment opportunity should be evaluated only through the applicable offering documents and with the advice of each investor’s own professional advisors.
