Diary of a Real Estate Fund Manager

The team was able to make a great opportunity out of this property through its strategic partnership with its sister company, Own It Detroit – Mutual Property Management, LLC, who has managed this property for a long distance investor for a long time.

The property in the Harmony Village neighborhood, close to great suburban amenities such as DMC Sinai Grace Hospital (3 mins) and Home Depot (5 mins) .

This low-maintenance tenant has been in this property since 2018 and does not wish to leave.  She agreed to a rent increase to $800 post-closing.

The recommended play is to buy it as-is for cash, and do nothing. Let the tenant stay for as long as possible with small increases in rent over time, and eventually it would make a great flip because the area has great growth potential, and nearby comparables are available at about $125,000 for this gem.

This is a 3 bed, 1 bath, brick construction currently rented in the Warrendale area.  Warrendale has started to show popularity in the recent years due to its proximity to the affluent city of Dearborn for those priced out.

The tenant has lived in the property for over 10 years, providing stability, and is likely to remain long-term. Her rents were at $650 a month, but our team was able to get her to agree to a post-closing rent of $800 per month, much closer to the market rent of today.  This makes the property an attractive investment with no CapEx, and immediate cash flow.

• Property Address: 6190 Harvard Street, Detroit, Michigan 48224
• Acquisition Date: August 8, 2024
• Acquisition Price: $73,860
• Capital Expenditures (CapEx): $35,000
• After Repair Value (ARV): $150,000 to $155,000 (conservatively)  See Comp 1, Comp 2, Comp 3.
• Potential Rent: $1,200 per month (conservatively)
• Simple Cash-0n-Cash Return Estimate:  10%+

6190 Harvard is a charming brick building located in the highly sought-after East English Village neighborhood, just north of Grosse Pointe.