The Right Type of Detroit Real Estate Investment for the Current Market
Very often you’ll hear or read about the types of properties you should not buy in Detroit for real estate investment. However, what are the better properties that investors should buy?
We know that price should never be the first determining factor when you’re looking at investment property. The most important aspect in investments is the investing business model. Choosing the property just based on price, but ignoring the highest and best use for the property, the goals of the investor, or even the interest level of the investor can ruin the chances for a profitable real estate investment.
Because we’re here in Detroit, we get a lot of interest and inquiry about the low prices. For a long time, there were multiple news stories worldwide about buying cheap property in and around Detroit.
Those stories didn’t necessarily give the real estate investors an accurate picture of what acquiring a real estate investment property in Detroit truly entails.
So what’s the real goal for the investment? Is it to create monthly passive income?
Is it to realize a great yearly return? Is it to build value and sell to realize capital gains?
Once you know the goal and the true reason for considering buying an investment property, the rest of the process for choosing the right property gets easier.
Here are some important factors to consider:
- What’s the main goal for the investment property? Buy and Hold or Buy and Sell?
- What are the current rents/sales in the target area (less than 1/2 mile away)?
- For rentals: Is the property rented ? How long has the tenant occupied the property? What’s their record of payment?
- For rentals: What’s the maintenance required for the property? Does it make financial sense?
- For Fix and Flips: What are the recent sales within the past 6 months and 1/2 mile to 1 mile from the potential property?
- For Fix and Flips: What are the true rehab costs, holding costs and hidden costs I may not be aware of?
Once investors can focus on the true goal for the investment, it’s easy to determine whether or not the property fits the goal.
Need help finding and evaluating rental investment proprieties? It’s our specialty!
Contact us immediately: MyRealEstateTeam1@Gmail.com or (248) 905-1531. You can also use the form below.
Good luck and happy investing!