Diary of a Real Estate Fund Manager

Investment Summary:

In value-add turnarounds, even with a dream team like ours, there are times when the budget runs over. This project required $11,000 more in repairs than we initially projected — yet we still delivered an initial net ROI expectation of nearly 10%. This outcome highlights the margin of safety we build into every deal, allowing us to perform even when costs shift.

Property Overview

Address: 22477 S Kane St, Detroit, MI 48223

• Purchase Price: $50,000
• Estimated After Repair Value (ARV): $125,000
• CapEx (Capital Expenditure): $40,000
• Rent Potential: $1,200/month
• Square Footage: 914 sqft
• Year Built: 1952
• Lot Size: 46 x 118ft
• Property Taxes (2024): $1,141.64
• Zoning: R1 (Residential)

Neighborhood Analysis

• Location: Eliza Howell neighborhood
• A quiet brick street close to Schoolcraft/I-96 and Outer Drive, allowing easy access to the nearby suburbs
• Market Insights: The Zillow Home Values Index shows this area’s average property values to be about $90,000 in 2025, about 15% higher than the rest of Detroit, showing its desirability to the local residents
• The I-96 allows the residents to enjoy nearby suburban lifestyles, such as access to Costco in Livonia (7 mins) and Meijer on Grand River (8 mins).  It is also 20 minutes’ drive from the Detroit Metro Airport on the Route 39.

Investment Summary:

The simple ROI expectation on this property is 9%.  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