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.
The play: Buy and Hold. Negotiate a higher rent with Section 8 immediately after closing. The Team is hopeful for a rent raise to $1,200-$1,250 immediately, and from there on, a large raise every year until the rent can catch up to as close to market rent as possible.
- Acquisition Date: August 23, 2024
- Acquisition Price: $177,000.00
- Capital Expenditures (CapEx): Minimal, currently rented
- Comparables: $300,000 (conservatively)
- Current Rent: $892 (application submitted for an immediate raise)
While most of our SFR acquisitions are structured to generate a good balance of strong cash-on-cash returns with healthy equity growth, this property is an outlier focused primarily on equity growth. Although it does not cash flow well in its current state, we have already locked in substantial equity at the time of purchase and expect this growth to lead the portfolio. Our proprietary algorithm ensures that the overall portfolio maintains an optimal balance between growth and cash flow, delivering the best possible performance for our investors.