9075 Brace, Detroit – An Investment you might like

$49,000 asking price

This is our rental property – 9075 Brace, Detroit.  1500 sq ft, 5 beds, 2 baths.  Solid street in Detroit (streets are important and often vary quite a bit). Rented on a 2 year lease for 800/mo.  The asset is on the West Side, which is the “hot” side of Detroit – with easy access to the expressways, casinos, stadiums, bars etc and that drives demand.  There is just a lot more happening on the west side.

Numbers:

Yearly     Monthly
Current Rent   $9,600      $800
Taxes                   $1392       $116
Insurance          $744         $62
Cash Flow        $7464        $622

This has a 15.2% ROI.

And also, the renters are on a two year lease and will probably never leave.  They love the house.  They cried when they signed their lease.  Very sweet, hard-working people.

Fair market for rent is probably 900/mo.  We liked the renters in the property so we didn’t want to push the price. We think the $ 49,000 asking price is fair and on top of that, we will guarantee rent for 12 months.  Meaning that we will take 12 months rent and put in an escrow account and after 12 months if your renter misses a payment, it comes straight out of the escrow.  Or better yet, we pay you the entire escrow up front and then collect the rent on our own for one year.  It’s a testament to the belief we have in our tenants that we rigorously screen.

If an investor from this blog buys this asset, he will have the option to put a management team to manage the asset.  We have three highly qualified teams to choose from or he can manage it on his own.

Lastly here are two other houses in the same subdivision that sold as investment assets for much more and are not nearly as desirable.

9584 Warwick St, Detroit – $50,400  http://www.zillow.com/homedetails/9584-Warwick-St-Detroit-MI-48228/88661901_zpid/

9341 Piedmont St, Detroit – 56,300  http://www.zillow.com/homedetails/9341-Piedmont-St-Detroit-MI-48228/88751708_zpid/

We will be offering it to the market at some point, but I’ve had good success and interest with blog readers in the past.  So, if you are interested in this asset, or just want to learn more, feel free to hit me up with some questions.  If you buy an asset from the blog, I will be able to guide you and give you tips should you ever run into a new situation.

Justin