Anatomy of A Great Detroit Real Estate Investment Deal
Sometimes Detroit real estate investors just need to see the numbers to know that the types of investment properties they’re seeking are really out there.
Here’s an excellent example of an affordable, large rental property that needed just a bit of work to make it ready to produce cash flow:
Property Type: Single Family Home
Sq. Ft: 1460
This gem is a great example of a huge rental property that needed a small amount of rehab to make it ready for renters.
Additionally, because it was located in an up-and-coming neighborhood, the value of the property over time will increase.
Here’s how to evaluate potential cash flow (*NOTE: this is for investors paying cash)
|All in Cost||$56,500|
|Monthly rental payment Unit 1:||$900||$10,800|
|Total Gross Rent||$10,800|
|City of Detroit rental inspection fee||$150|
|Net Operating Income|
|Annual return||(If paid all cash)||13%|
So, even with expenses and city inspections, the return can be 13% or higher with higher rent.
Additionally, as the market increases, the property value will likely double within the next 1 to 3 years.
This is a win-win all around.
Call us or click the box below to get great deals like this for your investment portfolio.
Good luck and happy investing!