I recently met with a group of investors, and our main focus was discussing the amount of traffic we are all receiving from interested investors from other countries. While Detroit has always been a hot bed of activity for real estate investors located all across the United States from New York to California, recently the amount of activity from out of the country investors is impressive. One of the people in our group runs one of the largest property management companies in the state of Michigan, and his focus lately has been almost entirely on managing properties with owners located out of the country. What many of these types of investors choose to do, is travel here for a weekend, jump on a bus, or a van, and drive through Detroit looking at 20, 30, 40 or more houses. They travel from one foreclosure to the next. The biggest reason they are spending this much time here? That is simple; Cost of acquisition.
In Detroit you can buy a property that has already been rehabbed, and has a tenant placed inside for less than $40,000. When you think about the real estate markets where most of these investors are coming from, that low price is simply amazing to them. These properties also rent for anywhere from $650-$1,100/month, so the potential cashflow is phenomenal! One group traveled from London to Detroit for a weekend to look at properties. They left after completing purchases of 20 homes.
While investing in Detroit real estate is not for everyone, if you do have an interest in cash flow properties, I highly suggest you look here. Take a weekend of your time, look a bunch of homes, see the city for yourself, and realize the potential!Share post