Three Principles to Live By When Investing in the Detroit Real Estate Market
Everyone has heard many epic claims about Detroit as a real estate investment hub:
It’s either epically PHENOMENAL
It’s epically TERRIBLE.
Thankfully, neither claim is entirely true.
It’s great IFyou know how to navigate the rough real estate investing terrain.
Here are some Detroit real estate basics that may help:
1. Never, ever, ever, NEVER, ever buy what you cannot see. Never. That’s the Law. Don’t violate it. Ever.
We know the house looks great from the photos…on the internet…that you’re viewing from thousands of miles away. Trust us, everything looks great from afar.
However, when you begin to examine the interior, the surrounding homes, and the deep recesses of the property, it will most likely look different.
This is a business, we invest the time to examine the product. Period.
2. Location, Location, Location still applies to investment property
Even if your property is in the best, most pristine shape, if the properties surrounding it are vacant, fire-damaged, and dilapidated, it will kill both the desirability and value of your property.
We always pay attention to the surrounding properties and overall neighborhood because while you can easily affect the condition of your property, unless you’re purchasing every house on the block, it won’t be that easy to overcome the effects of buying in a bad area.
3. Just because it’s cheap doesn’t mean it’s a good deal
Believe it or not, we’ve sold homes for as little as $1. That still isn’t a “great deal”.
Whether it’s $1000, $2000, or $5000, the price isn’t the reason investors should buy in Detroit.
The homes that cost next to nothing are likely worth next to nothing.
What you won’t see is the scores of burned-out or vacant homes surrounding this seemingly cheap steal.
Renters won’t want to live in the area very long and potential buyers can spend good money elsewhere. It’s a hot potato. Don’t get stuck with it!
Invest according to a reasonable real estate investment business model. No, you won’t likely get away with spending the least, but spending wisely will prove to pay off well for years to come.
To get more tips or if you have questions about real estate investing in Detroit, fill out our contact form and someone will get back to you ASAP!