Detroit, Michigan - 2009
The current market in Detroit Michigan is perfect for investors that want to buy up single family houses, multi-family properties and streets to re-develop a neighborhood. There is plenty of opportunities in Detroit for the savvy investor that wants to build a cash flow investment portfolio of houses with the goal of holding on to the properties 10-15 years.
By the time 10-15 years have passed all of the houses would have been paid for long at that point since deals are going anywhere between $5-20k for rehabs and $30-40k for carpet and paint to pretty houses. Any investor that buys 20-50 houses on one street or neighboring streets in a small radius then make sure the houses are fixed properly, that investor can build some nice cash flow of wholesale purchased properties after rehabs for their portfolio.
All of the money that was going into stocks should be invested into the real estate market because people will always need a place to live. Bread and butter houses will always rent and when you have 35% equity, you can offer the lowest rent around and still make some cash flow. Then after holding the properties for some time they can be sold off to other investors or you can fix them up one last time and sell for a big payoff since at that time the houses will be paid off and your cash flow would have paid you very well over time.
Donald Trump and Warren Buffet have the same philosphy when it comes down to buying properties during economic down swings, they both agree to buy when people are selling and sell when everyone wants to buy. In other words, buy as many deep discounted properties as you can fit into your budget. This article isn't to tell you about the different criteria of what makes a good investment property, you should know that in sluggish markets you should only pay up to 70% of market value to cash flow and up to 85% in a booming market. Now during the current market of Detroit you can purchase properties below 70%, imagine the cash flow potential and what it can do for your investment portfolio.
About the Author:
Donte Mazyck is the acquisitions manager for BofC which is a company that buys houses at deep discounts. BofC comes across so many properties in the Detroit Michigan area that we would like to pass some of these deals over to investors that want to build a portfolio of rental properties for long term investments. Detroit Michigan isn't a quick flip area as well as most cities around the country. With the market the way it is, you should be like the smart investors and pick up these deep discounted properties at wholesale deal prices after the rehab. Investors that want to build their cash flow property portfolio can call us toll free at 888-219-8619 ex 130 and mention your access code "cheap properties" for bigger discounts or visit us on the web to join us at Detroit Wholesale Properties.