Today I’m going to finish-up with part two of my talk on why I feel Detroit is one of the best real estate market to invest in.
Click the link below if you missed part one:
Why Detroit is one of the Best Real Estate Markets to Invest In – Part One
With that out of the way, where was I? Oh, yes…
Be a Part of Change in the City!
I know this sounds corny, but buying, rehabbing, and renting properties in the city of Detroit gives you an opportunity to make a living while making a
difference.
There’s a “plethora” (I couldn’t wait to use that word, makes me feel smart :-)) of once-nice neighborhoods that need restoration.
When you fix these properties up, you’re doing your part at making Detroit a better place to live, one house at a time.
But let’s be real. I know you don’t care much about that, so I won’t spend much time on that.
Let’s move on.
Downtown Demand
There’s quite a few Downtown Detroit developments on the horizon.
This means that there are some great opportunities for investors that invest in single (or multi) family properties in the neighborhoods that run along the perimeter of the downtown sector.
What developments are on the horizon, you ask?
Well, for one, Dan Gilbert, the founder of Quicken loans just bought-up quite a bit of commercial real estate downtown, and he moved a lot of the Quicken employees to downtown, already.
And you’d better believe he didn’t buy these properties to just sit and look at em.
Related: Average House Price in Detroit Going Up… What Does that Mean for Investors?
I’m willing to bet he has some big projects up his sleeve.
And whatever he’s going to do with them will probably increase the amount of people that will be working downtown, and people love to be able to save gas and shorten their commute…
Catch my drift?
Low Prices = Good Spreads to Hire Property Managers
If you can’t tell from my other posts, my first years in real estate here in the Detroit market were a nightmare.
For one, I paid way too much for the houses I bought initially.
And secondly, let’s just say I learned quickly that being a landlord that personally manages their properties isn’t something I’m cut-out for.
With the prices of Detroit real estate being so low, there’s more than enough monthly “spread” there that’ll let most landlords comfortably hire a property manager to tend to the day-to-day issues with tenants and properties.
Managing properties yourself can be a real headache, especially if you don’t live in the area where your properties sit.
Related: See How Easily You Can Find Detroit Houses for Sale Cheap
Negatives of Investing in Detroit
I’m not going to blow smoke up your butt and act like it’s all “peaches and cream” here in the Detroit real estate marketplace.
Everything in life has its positives and negatives, Detroit real estate included.
Taxes/Insurance
The taxes in the city are high as hell.
And you don’t really get good services for the money you pay.
Insurance is high as hell too.
Property Vandalism
You’d better make sure you have a solid plan as far as securing your property in the city.
People will break into your property at the drop of a hat if it’s obvious that it’s empty. Especially if you’re in a bad neighborhood.
Make sure you emphasize (and re-emphasize) the seriousness and urgency you place on securing you homes to your contractors.
Make sure they know how serious you are about them properly securing the property each and every time they leave.
OK, I’ve been yappin’ for too long, let me finish this up.
Conclusion
By no means is my short list of negatives all-inclusive, but even with the negatives, it’s fairly obvious that Detroit is one of the best real estate markets to invest in.
At least to me it is.
Just do your homework, be smart, and buy right, and you should be fine.
What positives or negatives to buying real estate in Detroit didn’t I address?
Let me hear from you in the comments section below!
If you’re interested in buying or selling single investment homes in “The D,” give us a call, or fill out the “Contact Us” form.
To your success,
Alvin
