US Detroit

Discussion in 'Where to Buy' started by Dean Collins, 30th Apr, 2018.

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  1. Car tart

    Car tart Well-Known Member

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  2. MTR

    MTR Well-Known Member

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    This link has been posted many times on PC

    Same reason some see an opportunity and take action, while some sit back and say I should of, I could of

    markets rising in many States in US, I guess I am an investor first and i do this to make money

    Not here to justify why?? Just presenting some info/facts
     
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  3. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    That article is 2011? Come on seriously its nearly 2019.
     
  4. Car tart

    Car tart Well-Known Member

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    I am not rehashing it for our sake. I am a regular visitor to the USA, 6 weeks every two years. When I ask about local investing, the US locals ( my family) talk about the fear of investing outside their state. They seem to fear this more than we think. If you read my question again you will see that I feel Americans fear Detroit, Harlem, parts of Vegas etc and this blindness stops them from making a balanced intelligent decision. So the question is why do the bulk of Americans not utilise this formula of growing wealth. And I gave the only reason I know and asked is this the answer? Sorry to bring this caption up again but it is pivotal to the only reason I have.
     
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  5. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    You will realise the serious investors are not normal. They have a taste for risk and love the challenge it provides.

    Many on here with property portfolios in excess of 20, 30 or even 50 houses. They are the top 0.001% of investors. Different league of people you cant compare with the average 1-2 house investor. We see things and opportunity in areas that others fear and have little to no understanding about.

    Just because 500,000 people can't see something opportunity wise and 50 people can - does not mean the opportunity is not present or real.
     
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  6. MTR

    MTR Well-Known Member

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    We don't need to look at US, look in our own backyard and ask the same question?
     
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  7. Luca

    Luca Well-Known Member

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    Totally agree, pioneers & visionaries are the ones making real money, followers (if they follow) will make a bit if they make it.
     
  8. Car tart

    Car tart Well-Known Member

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    .001% means the richest 250 people in Australia. I cant see me making that list no matter how much I invest in houses.
     
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  9. GentleChief

    GentleChief Well-Known Member

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    Most visionary people (Americans and Canadians included) see Detroit as the next hub to rise. And they are making a bee-line. Multiple offer scenario every day. It was Blue chip and now a penny stock. On it's way up again. With historic cash flow opportunity.
    Even if one does not believe the City is capable of Capital growth, (but nothing is farther from the truth), makes a case to be looked into. For the Cash flow.

    But why take a chance, some would rather profess to put their money into a shredder or on the nice Bondi apartment today as it offers stability and cash flow.
    Australian property can never go down, right.

    Everyone has a view. And it is respected.

    A Detroit property acquired on the 10th Oct day before yesterday:
    Price - 43,500
    ARV - 105,000 - 110,000 (after rehab value)
    Awaiting the rehab estimate - presumed to be between 18-20K

    ISu0wpfwyqy71f1000000000.jpg
    Comps (or Comparative Sales Analysis):

    10131 E OUTER Drive, Detroit
    Sold for 105,000
    DOM - 16 (Days on Market)
    SqFt Abv: $66.46
    Tenant occupied - paying 961 per month
    Sale date - 1.April.2018 (the market is much stronger today than it was 6 months ago)

    Just completed the 120th Detroit property transaction today with - Dacosta closing for an investor (who is a poster here on PC):

    Capture.JPG

    Millionaires are made from the bottom - like investing in penny stocks going up exponentially rather than waiting for a Blue chip to become Bluer - by growing at 5 -10%

    Just my humble thoughts, but why bother, haters will descend anyways... :)
     
  10. Dean Collins

    Dean Collins Well-Known Member

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    Nothing could be further from the truth.

    Yes some people are making money....mostly the salespeople and the lawyers getting investors in but if you compare the Australian economy and the Detroit economy you have rocks in your head.
    - Report: Illinois is 2018's least fiscally stable state

    Illinois is bankrupt. Thousands of people who live there are leaving/have left.

    They have so much property anyone with half a brain can secure a residence. Anyone who hasn't left.....you wouldn't want them as tenants and then you have to deal with blood sucking government who are so broke they cant even make money from the auction process selling off overdue rate debts to balance the books.
    - Jerry Paffendorf

    Yes some people will make money.....and if you have congratulations. But lets quit pimping Detroit to people on the other side of the world and making out its a "penny stock going to the moon" anytime soon.
     
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  11. GentleChief

    GentleChief Well-Known Member

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    Other prime deals concluded this week:

    Under Offer 11087 Coureville.jpg
    11087 Courville st Detroit
    42K - 4 bed potential 1000 per month in rent
    comps - 80-85K

    Under Offer 18680 Hamburg.jpg
    18680 Hamburg st Detroit
    33K (3K rehab estimate)
    750 per month rent
    Nearby Comps 75-80K

    And a 4 pack - bought by a single investor - 86K rents 3000 rents per month
    (nearby comps at 140k)

    8107 (3).jpg
    14019 Northlawn (3).jpg
    GetAttachment (1).jpg
    GetAttachment.jpg

    This is a humble depiction of what pure cash flow means, no after-tax calculation needed!
     
    Last edited: 12th Oct, 2018
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  12. Dean Collins

    Dean Collins Well-Known Member

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    and what are the taxes on these properties per annum at $1000 per month rent.

    its great that for $86,000 someone bought 4 properties......but what is the after tax/after management/after expenses per annum on these 4 properties?
     
    Last edited: 12th Oct, 2018
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  13. Lacrim

    Lacrim Well-Known Member

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    Personally for me, if I could buy houses for $30/40K outright, and they were an absolute stellar performer in terms of cashflow, CG, low maintenance, stability and quality of tenants, I wouldn't be telling a soul about it, let alone posting details on a public forum.

    I'd be too busy getting rich.
     
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  14. Speede

    Speede Well-Known Member

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    $100,000 AUD = $71,000 USD.... today's rate....think about that for a second ......
     
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  15. Luca

    Luca Well-Known Member

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    What about if USA gets another Great Depression like 1929? And if Michigan increase the taxes by 500%? Where will my cash flow go? This started me thinking about Australia too. What will happen if interest rates go to 10% and also the banks push me to go to P&I on all my loans? I think I am going to sell all my assets and keep the cash home, not even using the banks anymore, do you really trust the banks?
     
  16. wylie

    wylie Moderator Staff Member

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    You can't buy in Australia for the prices you can in the US. Wages may be lower but even so, buying a place for $30k just won't happen here.
     
  17. MTR

    MTR Well-Known Member

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    I know.... and you get the high returns
    Oz average yield now 3-4%
     
  18. MTR

    MTR Well-Known Member

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    Depends.... good for me as I have USD, I got a pay rise.....that is around 40% on my rental income when bringing back funds home. I do this monthly forms part of my income

    Lets ponder for one minute, if I have an income of $155,000 USD, I am bring home . $217,000 AUD
     
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  19. MTR

    MTR Well-Known Member

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    Great to have discussions but lets present facts and lets not make it personal, otherwise you are derailing the thread.
    Its also going to be difficult because many will try to relate Oz market to US market which is a different beast.

    When I was buying in Atlanta in 2011... had mixed reactions. Many were comparing Atlanta to regional towns in Australia. No idea that Atlanta has a population of over 6 million and at least 21 fortune 500 company headquarters in this city.

    When I was buying in Atlanta I was told not to touch the beltline, inner city suburbs, as this was the hood. Pittsburg was a war zone, now it is very much sort after, good luck i you can buy something that needs major renovation for $150,000. At this time you could pick houses up for $15,000. Who would have thought
    Lesson …. look where governments are pumping big $ into and why.

    BTW, I am not promoting war zones, this wont work. Just trying to state that if you can find decent suburbs with upside then this is a good thing

    We just sold this property for $570,000. Evidence on Zillow.
    This location was very much undesirable in 2011. This was practically a new build, we kept part of the existing home.

    https://www.zillow.com/homedetails/996-Hill-St-SE-Atlanta-GA-30315/35877326_zpid/
     
    Last edited: 12th Oct, 2018
  20. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    How much was your profit after the build? And how much was your initial purchase of this house?