Diary of a Real Estate Fund Manager

This property is located in the culturally rich Bagley district. In the 1960s, music icons like Marvin Gaye and Stevie Wonder lived and recorded in the area. Today, Bagley has experienced significant revitalization, making it one of Detroit’s most desirable neighborhoods for new investment opportunities.

The seller had been renting this oversized property for a long time to a section 8 tenant.  Rent comparables for this 4BR 2.5BA 2,377 sqft property are likely in the vicinity of $2,200 a month, but the owner had not asked for a raise.

The seller accepted the MTMA Team’s all-cash, quick-close offer, believing it to be their best option due to their preference to stay hands-off.

This 3-bed, 1.5-bath, 1,386-square-foot property is in a small neighborhood called Shulze, located right next to one of Detroit’s most popular residential areas, Bagley. It is just a short drive from Sinai-Grace Hospital.

• Acquisition Date: August 16, 2024
• Acquisition Price: $90,000
• Capital Expenditures (CapEx): $35,000
• Potential Rent: $1,400 per month
• After Repair Value (ARV): $160,000 to $192,000

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 silent long distance investor for a long time. The property is located close to the Sinai Grace Hospital in the Harmony Village neighborhood.

Current Rent: 663.00 -> $800

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.

Buy and Hold Opportunity

This is a 3 bed, 1 bath, brick construction currently rented.

Current Rent: $650/month

Tenant has agreed to increase the rent to $800 post-closing. She has lived in the property for over 10 years, providing stability, and is likely to remain long-term. This makes the property an attractive investment with consistent cash flow.