Home Buying in Detroit>Question Details

Cychua77, Home Buyer in Detroit

Appreciate anyone can give insight whether the unit of 16217 Roselawn St with full refurbishment done and sold at $49.5K is worth to invest?

Asked by Cychua77, Detroit Sun Apr 22, 2012

Help the community by answering this question:


Wow, that price is high for the current market.

However, an investment property is "worth" something only if you're getting back what you paid for it.

So, there is some missing information here that we don't know:

1. How much does the property produce each month in rent?

2. Will you have any management duties once you own it?

3. Does it come with a free butler??

To determine if you're overpaying for anything, you must look at the actual sales within about 1/2 mile of that home and in the past 6 months.

When we do a search of properties within a half mile and in the past 6 months, we see that the highest 3 bed home with roughly the same square footage as the Roselawn property sold for $24,900.

Email us if you want to see that comp report.

Now, that doesn't account for any repairs that may have been done, nor does it account for the tenant in the property- these are valuable aspects, but not necessarily worth double the price! Sheesh.

Your price for turnkey rental units with tenants and management in place inside of the City of Detroit should be between $25,000 to $35,000.

They should be renting right now for $750 and up (single family homes).

Anything other than this should come with a free cruise or use of a luxury car for the next five years.

A tip we always give our investors is to get hard and fast sales data for the market. This means look only at what has been SOLD in the past 6 months that can be verified by some independent source.

Everything in real estate is verifiable, so always get a 2nd (or 3rd) opinion before buying. Beware of someone who will not show you more than one great investment property- they usually have a vested interest in you only purchasing theirs!

Good Luck and Happy Investing!
0 votes Thank Flag Link Sun May 6, 2012
If the ROI doesnt make sense then dont do it. Based on this scenerio its not a good deal. Its all about return and having a credible property manager. The area your suggesting isnt in the A areas we handle our homes. The street is good North of 6 mile but this is south where it is harder to get rents. If your looking for a good investement with nice returns give us a call.

Best Regards,
Property Consultants Assoc II
(313) 563 8144
0 votes Thank Flag Link Mon Apr 30, 2012
ABSOLUTELY NOT!!! If you're looking for a GREAT return for your money, with "full refurbishment", we can definitely help! Our units are $10k to $15k cheaper than what you're currently looking at. Feel free to call! WE CAN HELP!!

Have A Great Day!!

Joe Williams
16250 Northland Drive
Suite 202
Southfield, MI 48075
248-403-8313 Office
248-346-6135 Direct
"Houses are not our business, PEOPLE are."
0 votes Thank Flag Link Sun Apr 22, 2012
Highest priced sale within last 6 months was 40K on a 2300 sq foot home with 4 bedrooms and 2 1/2 baths. Not a foreclosure or short sale. At 49.5K seems overpriced.

Good Luck,

Karen Paytas, GRI, CMS
Real Living Kee Realty
0 votes Thank Flag Link Sun Apr 22, 2012
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