Walking Through a Detroit Landbank House & Investment Analysis

[@devonteforeman]

My family has been doing this in Pittsburgh. Our philosophy has always been if the neighborhood is recovering, the foundation is good, and the plumbing under the foundation is good we will tackle it. Foundation problems are typically the difference between a renovation and a tear down for a-lot of these distressed properties, so anyone considering this do your homework or hire someone to inspect it. Obviously we do it for the returns, but it's also nice seeing neighborhoods on the brink have a chance at recovering. It's incredibly satisfying restoring some of these older homes too.

[@SanbornConstructionGroup]

That’s exactly right. If the bones are good, it’s do able. Plus helping the community is always good

[@marcocaruso4777]

That’s great to hear. Do you go through the Pittsburgh land bank to get properties?

[@devonteforeman]

@@marcocaruso4777 We work with a group of realtors that know exactly what type of homes we're looking for. It just saves us a-lot of time because we would rather be working on a home than personally visiting hundreds of homes trying to find a good candidate.

[@beverlyjordan8957]

I think it’s so great you are bringing these buildings back to life. I just hope you are able to rent these units to hard working or retired people who will appreciate a nice home and continue to care for them. 👍🏻🇺🇸

[@SanbornConstructionGroup]

I sure hope so!

[@lindaroyal8161]

Wow, you make it sound so easy. It's a great investment, turn around for your money. Being that you have the experience and crews to make it happen, it will be a nice property. I love listening to you explain properties from all your experiences.

[@SanbornConstructionGroup]

Thank you!

[@dismurrart6648]

I love seeing these videos because its so interesting learning what causes stuff like that and how youd fix what would be unfixable for someone like me.

[@SanbornConstructionGroup]

It’s just a matter of learning what to do!

[@kathrinekerns8398]

I love the doorframes and hardwood floors. I can imagine that this was very nice before nature reclaimed it. Sad that it was so neglected. It will be so interesting to see how it is brought back from the dead (so to speak). Definitely worthy of rehab. Kudos for your vision. Hope you make a good profit.

[@SanbornConstructionGroup]

I think as long as you understand the Detroit market and that it’s a hold, not a flip, you’d be fine

[@cheskydivision]

To often the homes my nephew worked on would end up stripped by morning. To often boarding up during the night was not always helpful. I love Detroit, grew up in one of the best areas but some ppl just cause issues.

[@SanbornConstructionGroup]

We don’t see any of ours stripped anymore, mostly just furnace and hwt but we don’t put any in

[@freshboimusik313]

​@@succinct685 hot water tank

[@craiggillett5985]

I’ve been watching from New Zealand 🇳🇿 and live your drops. Totally different market from New Zealand 🇳🇿 but I’ve always wondered what the inside of these homes looked like. Thanks for your work.

[@SanbornConstructionGroup]

That’s awesome to hear, you’re welcome!

[@craiggillett5985]

@@SanbornConstructionGroup loved not lived typo

[@tabbott429]

High risk projects in high risk areas. Likely have to hire security to watch site until its completed. You get half way done and somebody burns it down then what? That place is a biohazard.

[@SanbornConstructionGroup]

High risk high reward 😎

[@emmyjj5612]

Well, then you move on to the next project. It's a calculated risk and, hopefully, you're good at math.

[@tabbott429]

@@SanbornConstructionGroup "High reward" renting in Detroit? Flipping? THe RE market is slowing due to high prices and affordability factors. Be careful.

[@Antonio_]

Love your channel man, I'm an agent up here in Flint. You're like the Ben Mallah of the D!

[@SanbornConstructionGroup]

I’ve been curious about the flint market for quite a while. And I appreciate that, when I lived in Tampa I would drive by Ben’s house occasionally thinking maybe one day

[@Antonio_]

@@SanbornConstructionGroup If I happen to come across anything that might be worth your time here, I'll be sure to send an email. I'm interested in learning more in regard to blight elimination so I can utilize it here in Flint. Your video where you essentially bought a house, tore it down, and received a bond from the insurance was pretty interesting.

[@donnamariebrown2478]

Thanks Nick, enjoy your videos!!

[@SanbornConstructionGroup]

Glad you like them!

[@Teatimebarbi]

New sub, just found you today and absolutely LOVE your channel! Binge watching now! Also googling your company next as we are looking to invest in Detroit. Thanks for sharing!

[@isaact2792]

What do you do with the brick ledge on the foundation since you're replacing the brick with siding?

[@allmight6157]

I like what you are doing and wish you success in all your future endeavors

[@SanbornConstructionGroup]

Thank you!

[@truckingisinmyblood]

How do you keep vandals from stealing while you are rehabbing? A lot of people rehab in Detroit and have the water heater stoves etc. stolen while they rehab

[@RogerMudd-gh4ms]

A guy from Australia was rehabbing a multi unit like this one and was murdered in the building. They'll strip or burn it and if you're lucky you'll live to tell about it.

[@SanbornConstructionGroup]

You just don’t put them in

[@beckysnyder4591]

On HGTV is a show called Bargain Block. guys buying property like this & completely redoing them. Happy you are doing this too. I grew up on th West side in the 1950's moved in 1963 at age 14 with Mom

[@SanbornConstructionGroup]

You can’t beat the old Detroit architecture and buildings

[@mcgjohn22]

as you progress along would be something to see the images or short video as you re-hab the kitchen, bath etc.

[@lindaroyal8161]

I would like to see the "during" rehab videos too, at least the before & afters.

[@SanbornConstructionGroup]

We’re working on it!

[@JulesArtelierandEmporium]

Unit 4: I'm in UK. I just flatten the whole house and start again, far cheaper and better piece of mind in the long run

[@redneckbryon]

Definitely was a very nice property at one time. Be cool to see what it looked like in its prime. Definitely unfortunate, so many beautiful buildings like this get destroyed. It looked like the one unit had nicer woodwork. I wonder if that was the owner's unit.

[@SanbornConstructionGroup]

I thought the same thing

[@timzzz9963]

thats not far from where I got lost a couple years ago near poplar and tillman. As a canadian that was terrifying lol.

[@shaqsmith6562]

The one part of the equation people don’t always consider is , sometimes tenants stop paying rent 🤷🏽‍♂️ and damage your property

[@TheOldTapeArchive]

Given the neighborhood and the condition, finding someone to reno this property may be a challenge. I'm bullish on 35% of Detroit. The rest I wouldn't touch even if a small profit was guaranteed. Too many headaches and risk of scrappers and other assorted crooks (incl. politicians and red tape bureaucrats). That said, I hope someone takes it on.

[@0oohhhlala]

Well, I’d love to buy my childhood home in Westside Detroit. I moved to Atlanta and now live in Washington DC. I moved from my childhood home back in 1996, and went back to view it in 2022. It’s the worst home in the street. I’m surprised!! I’d love your help!

[@SanbornConstructionGroup]

We’d be happy to put it back together for you!

[@marygrzeskowiak8959]

OH MY LANTA😮

[@KarinaNimer]

This seems like a pretty darn good BRRR. Could you give me a rough estimate on how many Detroit BRRRs end up being infinite return for you? That's the dream for me one day

[@SanbornConstructionGroup]

That’s all we do. Brrrr is our preferred style, nearly all of them end up infinite but occasionally you leave a little money in one

[@JoJo-ie8sl]

It's got good bones to it. Just a big time investment to bring it up to snuff

[@SanbornConstructionGroup]

And money! Always money 🤣

[@SK-lf1cr]

How important is location for the multi-unit land bank projects? Is it harder to buy a “good” area vs SFH?

[@SanbornConstructionGroup]

RE here is mostly cash flow not appreciation so we don’t worry about area more or less than anywhere else

[@Bleen76]

Okay. Say you buy the property, rehab it, make it livable…. Who is going to be living in these neighborhoods? And will the property be destroyed, broken into, etc… after a few years?

[@JackRusselMan]

I want to learn on how to do this!

[@jamespiersol]

If you refinance and pull out the 300,000 won’t you just have to make payments on that?

[@SanbornConstructionGroup]

That’s correct

[@Grovel007]

I’m subscribing before 100k followers 😊😊😊

[@SanbornConstructionGroup]

🎉 woo!

[@AlgoMarketTheory]

That math is really misleading since ROI needs to be after expenses... valuing the building at 100k/door is optimistic however after you refi it and get your 300k back you'll still be paying over 2k/mo in interest on that 300k so that 50k you advertise is like 20k. Insurance will take that to 13k and management costs and everything else you get nickle and dimed on will bring that down to 5. If you have any taxes on the building then it's costing you money

[@SanbornConstructionGroup]

I could break down the math in detail but mortgage+taxes is roughly $2350, insurance roughly $350, if you’re collecting $4000 a month, even after management, you’re still cashflowing $900 and recoup all of your original investment. If you want more cash flow pull less cash out. It’s pretty solid return on $0 investment 🤷🏻‍♂️

[@JacksonDigitalAcademy]

BOSSS!!

[@NotfromDetroit]

I wish you had a class about this so I can purchase a land bank home.

[@very5ick112]

''shea show riding videos'' is shea woods a real estate guy in detroit.

[@Hailyeah555]

I’d imagine you’re going to gut it to the studs

[@SanbornConstructionGroup]

That’d be the recommended route

[@GrossePointeDenny]

Under that penny tile, the floor is rotted anyway so it’s not salvageable

[@SanbornConstructionGroup]

I’m not so sure

[@very5ick112]

it has piss stains ugh

[@BillMurray137]

It's funny when you put new windows in and come back the next day to find them stolen or broken. Detroit. You can't fix Detroit, you can only paint over the mold.

[@SanbornConstructionGroup]

Have never had that problem, a few get broken here or there, but never a whole house

[@smmgl]

Save the bathtub money! Just put a shower...

[@SanbornConstructionGroup]

Most tenants here have kids that require bathtubs

[@marshaldix651]

Great vidio but that $300,000 has to have payments so your profit isn't basically what u were saying unless u are selling it.

[@JohnR-gk7ch]

You expect to get $400,000 for that once finished?

[@SanbornConstructionGroup]

There is no reason it wouldn’t dscr at that value with tenants in place and rehab complete. Across the street are 100 new townhomes

[@69eddieD]

Brick rustlers again. Maybe you could buy the old brick back at a discount!

[@Kevin-wj4ed]

Who will live in this area of town????

[@gingermonette7455]

I fail to see the reasoning behind repeatedly zooming in and out. It only serves to make me dizzy and distract from excellent content.

[@SanbornConstructionGroup]

We appreciate the feedback. We're going to take it into consideration for the upcoming videos. - Connor (Sanborn Editor)

[@lorip1435]

Yuck. looks like a bulldozer special.

[@SanbornConstructionGroup]

It’s got huge investment benefits

[@gyilgor6803]

Might get valued at $400K, but you'd be lucky to sell it for $225K. And no one's gonna pay more than $2K/mo in rent in that area. And you forgot about property taxes and insurance, eviction costs and repairs. This is a fantasy video.

[@dwightschrute900]

No you are