Why are you Being CHEAP on the Rehab?
Why do you buy a property for an investment, and do a poor job at rehabbing the house and expect to rent it to a QUALIFIED renter? (SECTION 8 TENANTS) or Land Contract Buyers.
Do you know that Detroit is the second largest rental market in the US?
That means a lot of people are renting and some of them make 50k or more. They can't get a mortgage with there credit. So they rent but want a BETTER home in a BETTER neighborhood and the DEMAND is HUGH!
If your buying homes and flats in Detroit and want to get GOOD tenants to rent them you better find out what areas they are moving to and will pay extra for it, and start buying there.The key to having a property that GOOD tenants want to live in is making the Best choice. Finding the right house in a good neighborhood and having more than one GOOD tenant to choose from.
When you rehabb a house up to code and it PASS inspection and you bought in the Right neighborhood you WILL get MAX rent for that area. MAX rent (900-1000) for a 3 bed room Brick house.With these kind of renters you will NET 13-18% Monthly Cash Flow and Large Down Payments.
Did you know that Detroit has over 100,000 people that rent single family homes and the average rent is 750mo?
Detroit is a buy and hold rental market with long term cash flow with NET ROI (13-18%)
If you have have these type's of properties you are making Cash Flow, Hassle Free.
If not you need to make a change in the direction the market is moving.
Good tenants will pay Good money to live in a house and neighborhood they like.
All you have to do is supply the homes. The DEMAND is HUGH
Right now the properties in Detroit for rent won't pass inspection creating this HUGH DEMAND
Next time I will talk about why Detroit has a poor grade for rehabbing properties.