Investment properties can be a wonderful way to build your portfolio. Let us point you in the right direction, read on to learn about these 5 signs you are getting a great deal on real estate investments in Detroit
Location, location, location! Anyone with experience in real estate knows that this is one of the most important factors in a property maintaining its value over the long-term. This means investing in the most well-established, more desirable neighborhoods. Should those properties be a bit out of your budget, look for an area that has signs of improvement and is located near other flourishing communities. Take a stroll through the area, does it seem pleasant? Are you comfortable as you walk along? Are there parks or sidewalks? Properties with these qualities are indications you are getting a great deal on real estate in Detroit.
An upswing in the local economy and improving job numbers are positive signs you are getting a great deal on real estate in Detroit. When a new industry is moving into the area, there is usually growth in the real estate industry as well. New factories or large commercial office buildings bring new residents to the community. Due to the demand for new construction, additional jobs are created. The number of professionals as well as employees in the service industry naturally increases at a steady pace with job growth throughout the area. This increased demand for housing builds value in real estate.
Properties that merely lack cosmetic appeal but are structurally sound are the perfect investment. Often, homeowners become unable either financially, physically, or both to keep up with touch up paint, and other minor repairs around the house. The outside of these properties may also appear a bit disheveled, however often underneath all the clutter, you’ll find sound bones and a magnificent landscape waiting to be brought back to life. Should there already be the added bonus of curb appeal, this is another good indicator that the property will rent quickly. Homes without any major repairs required are a sure sign that you are getting a great deal on real estate investments in Detroit.
The One Percent Rule
There is a rule of thumb among investors called the 1% rule. Basically, if a house has a value of $100,000 I’m properties nearby are renting for $1,000, or 1%, this is a sign you are getting a great deal on real estate in Detroit. The underlying purpose of this rule is to quickly determine if the rent you will be able to charge your tenants will be greater to or equal to the mortgage payment, thus ensuring that at worst you break even on your investment.
Comparative market analysis or CMA allows you insight into the current market value of properties that are very similar located in the same area. Properties that haven’t been sitting on the market for a long time period and fall below the average listing price is another sign you are getting a great deal on real estate investments in Detroit. You will need to be on top of your game and the current listing inventory to scoop up these bargains.
Ready to learn more about winning at real estate investing? Let our experienced professionals at Sell Inherited House Detroit guide you every step of the way. Why not benefit from our experience and full-time dedication? Our job is to make your real estate investment dreams come true! Work with Sell Inherited House Detroit to be certain that you will be getting a great deal on real estate investments in Detroit. To learn more about us and what we can do for you, send us a message or give us a call today at (248) 460-1606!