Bucking national trends, home prices in Metro Detroit have risen by 1.2%, making yet another case that Michigan and Detroit offer some of the best investing opportunities in the United States and the world. Check out the article in the Detroit Free Press below and read about the increase.
Just recently, the Detroit Free Press wrote an article about loft living in the city of Detroit, and how it is become more and more popular. This again shows how strong the rental market is here. More and more people are having a hard time getting approved for a mortgage, however at the same time, they all want a nice place to live. Even Section 8 renters who in the past had to settle for possibly sub par living conditions are now able to be extremely selective. What this means to us, the real estate investors is that we need to be even more on top of our game than in the past.
We have to make sure our homes are top quality. The more luxurious we can make them, the better. The best part about this is that generally speaking, our rehab costs are what they are. To make them luxury VS making them just nice really doesn’t add too much to our rehab costs. At this point, where the business is, we have no other options but to make our homes the best on the block, and we have always, and will always continue to do so.
I can’t even explain how much our phone rings when we post an advertisement for a new home for rent in Detroit. When we use “Section 8 Welcome” in the listing, the amount of phone calls triple. For those who aren’t familiar with Section 8, the easiest way to put it is that it’s government guaranteed rent. There are tons of families in and around Detroit that are approved for this. Right now, Section 8 has an inventory problem. Simply put, there are way more families approved for Section 8 than there are Section 8 approved homes available.
Section 8 inspectors look for specific things when they approve a home. These are things that you need to make sure your rehab crew understands completely when rehabbing your properties. If you aren’t sure, or they aren’t sure, call us. We can help. For example – Did you know that some Section 8 inspectors will not approve a home for rent to a family that has children under the age of 6 if that home was not scraped completely to the studs paint wise. They are worried about lead based paint and children. Not every inspector operates this way, but some do. Good food for thought when putting together your rehab budget, and plan.
Check out the article below. It’s an interesting look at a little bit different rental market, however still shows that people want to rent in the city of Detroit and need good places to go to in order to rent from. The rental market is BOOMING. All you have to do to take advantage of it is call us. Make that call today and we can help you get started.
Another great article written about the city of Detroit, and its rebirth:
Will you be a part of this? Don’t miss out on the opportunity of a lifetime. Now is the time to invest in Detroit, MI real estate!
I get that question quite often from people who are interested in cashflow properties here. I can understand that it’s hard to believe that there are so many families that need good homes in the city of Detroit. The reality is, as this article points out, so many have lost their homes for one reason or another and simply can’t BUY any longer. What a huge opportunity that it provides for us though. Not only can we provide homes for families in need, but we can create fantastic returns in the process. Last I looked, there were over 8,000 familes in Detroit approved for Section 8 that did not have approved homes to move in to. The process to qualify your home as a Section 8 rental is a detailed one. We can walk your property through the process quickly and easily to make sure that you can maximize your returns.
http://detnews.com/article/20110505/METRO/105050418/Metro-Detroit-home-ownership-plunges-by-40-000
Take a look at this article. It shows how attractive the Detroit, MI real estate market is, even to people who are already highly successful in the real estate development business.
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!
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