Here’s one thing you should know about fixing and flipping properties in and around Detroit:
It’s going to be a lot harder than you think
There are a few tough realities investors just have to face right now:
- Very low inventory of properties that are flip-worthy
- HIGH prices due to inventory shortages
- Managing contractors is the stuff of your worst nightmares
There’s just no way to avoid the sinking reality that we are low on inexpensive properties in areas that will make a nice profit on a flip.
However, it’s not impossible, you just have to know where to look.
Believe it or not, the City of Detroit will be releasing thousands (ok, hundreds…ok, a few) Land Bank properties that may be good flip projects. Keep in mind those homes have been vacant for years sometimes and will require substantial rehab. *Warning: Do not buy sight unseen*
Another great source is former rental properties. Many landlords have been beaten up over the past few years and are ready to sell their rental properties. These may be hidden gems for a good flip.
Remember to check the comps before you purchase- you want to have the prospect of a good profit before you start the flip.
Although it’ll be tempting, avoid getting into a bidding war at all costs! Never let your ego trick you into paying more for a flip than you should. Stick to the numbers and turn down as many properties as necessary until you find your perfect project.
Due to heavy inflation, construction costs are at an unbelievable high. This means that you must have a mature, responsible contractor working on your project. Add into your written agreement requirements for remaining on time and on budget.
Also, if you’re managing from afar, don’t be afraid to employ a third-party to review the work done before any further payments are made. This will save you thousands of dollars and loads of frustration.
Metro Detroit is not the easiest market to wrangle, but it can be very fruitful if you can manage your project well.
If you need help finding resources for your next flip, please feel free to contact us:
Or just click here: https://www.detroitinvestmentpros.com/contact-us/