While the Detroit market has been one of the hardest hit in the country by the drop in real estate valuations, this drop has created one of the single best opportunities in real estate investing in the country at the same time. On a daily basis, investors come from all across the world to view Detroit properties, and take advantage of this opportunity. Many purchase sight unseen properties from the MLS as well for as little $1,000. Many of those properties end up being worthless, as they end up being on blocks that are surrounded by burned down properties, and essentially are not rentable. Our job at Detroit Cash Flow Properties is to bridge the gap for investors between what is worthless, and what is worthwhile. We can be your eyes and ears in the city of Detroit whether you live in Michigan, or London.
Properties can be purchased sometimes for as low as $35,000, WITH paying tenants, usually section 8, already placed in the property. An average Detroit property rents for approximately $800.00/month. While there are plenty of other cities in the United States that have been hit hard by the recession, providing other good opportunities in real estate investing, we firmly believe that Detroit is the single best place to invest based on the low cost of acquisition.
City of Detroit Facts:
1. Rental amounts have been on the rise, currently averaging out at $800.00/month
2. There are 8,000 + families approved for Section 8 housing in the city of Detroit who do not currently have approved homes to move into.
3. 3 bedroom homes that rent retail for $900.00/month sell for approximately $40,000.00
4. In a 2009 article in Business Week Magazine, Detroit was ranked as one of the best cities to get the most rental income for the least amount of investment.
5. With the right team in place, Detroit real estate can produce a 12-20% return.
6. The rebound of the auto industry has produced a fantastic opportunity for real estate investors in the city of Detroit.
7. Detroit has the lowest ownership rates for single family homes for the largest 20 cities in the country, creating a large opportunity for the rental market.
8. The credit crisis has created a huge opportunity for rental experts to rent homes to people who need to rebuild their credit before being able to purchase a new home.
Links to articles written about Investing in the City of Detroit
http://www.smartmoney.com/investing/economy/the-new-prospectors/
http://money.cnn.com/2009/10/16/real_estate/Real_estate_bargains.moneymag/index.htm
http://detnews.com/article/20110505/METRO/105050418/Metro-Detroit-home-ownership-plunges-by-40-000
