Home Buying in Detroit>Question Details

Giggs, Home Buyer in Atlanta, GA

Buying for investment( Section 8 tenant and good places ??)

Asked by Giggs, Atlanta, GA Sun Mar 24, 2013

Hi
Not sure if detroit is a good place to invest now? Can someone advise.

1) Need a tenanted house with a section 8 tenant or a house with a confirmed section 8 tenant. Budget is 30k max..

2) Pls advise what kind of rental amount I can get ( NETT) and which areas should I go for? I prefer if its near schools.

3) Is there scope for price appreciation?

Thanks!

Giggs

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Answers

8
Hi Giggs,

Detroit can be a great place to invest. However, based on the budget that you have, I would be concerned about the types of areas that your home might be in for $30,000. So, be careful with investors who seem too eager to get you fully rehabbed, pre-tenanted homes with reputable and professional management at this price. I would be concerned about the quality of this investment.

More than likely, to purchase a brick home in a great area where tenants will be lined up to move in to, your investment will be $38,000-$52,000. My partners and I have sold over 750 homes to international investors. And, one thing that we see constantly is investors who are experiencing major losses because they were sold homes in poor areas promising very high returns. All brick homes areas are NOT created equally. I am working with a group of Asian investors right now who have experienced major losses because of this very thing. Out of 15 homes that they purchased, only 4 of them were in good areas. And, even though the area was great, they are still losing money because of poor property management.

In the soled investment areas that you want to be in, you may be looking at rents between $825-$1000 per month.

Regarding appreciation, recent Multiple Listing Service statistics show that the median home prices in Detroit have jumped by 11% year over year. However, if you are purchasing a home in Detroit, it should be purchased for the current cash flow value. Detroit is a unique place in that the investment value is greater than the appraised values in most areas where some investment homes will be purchased.

Hopefully, this helps! If there are some additional questions that I can answer for you, please let me know.

Ian Watts

Your Detroit Real Estate Investment Partner

http://www.piersonandcompany.com | iwatts@piersonandcompany.com | 800-374-54​70
1 vote Thank Flag Link Mon Mar 25, 2013
Wow Giggs alot of mis information out here. I am an investor first. Have rented to sec8, employed,unemployed and others.

Can share my experiences. No obligation,just call or email me anytime. See comment below to investor looking for prooerties.


My specialty is acquisitons, i have been investing in Detroit for over a decade. Shoot me an email or call me direct, i can share what i have acquired, how and assist you in doing the same.

First piece of advise: the mls is for amatuers in acquiring investment real estate.If you want to pay 2x 3x necesasry you use mls. If you want to buy at lowest aqusition cost contact me

Aaronblewis@gmail.com 313-405-7337
0 votes Thank Flag Link Sun Apr 21, 2013
Excuse me...all Section 8 tenant aren't bad. In fact alot of us are working people that need alittle help to get back on our feet. We take care of property as if it were our own. 99% is a very high number to say we destroy homes. that isn't true by far.
0 votes Thank Flag Link Sun Apr 21, 2013
Hello,I'm a Section 8 Voucher holder,the best thing you can do when renting to Section 8 tenant is to visit where they live before they rent from you.If they agree fine, if they don't,no lose. Speak with their Section 8 worker, not just the Inspectors. And also their present Landlord. It will save you time and money.
0 votes Thank Flag Link Sun Apr 14, 2013
Yes there may be appreciation for homes in Detroit. But investing I real estate out of state is a risky business. Detroit taxes are high on many homes so be careful that you have positive cash flow
0 votes Thank Flag Link Mon Mar 25, 2013
Give me a call Delores #313-575-2336
0 votes Thank Flag Link Sun Mar 24, 2013
Giggs I can help you with that request. I have homes that are available with tenants and are managed and ready to go. Contact me at 313-422-5562 or aabrams@netzero.com
0 votes Thank Flag Link Sun Mar 24, 2013
Giggs I can help you with that request. I have homes that are available with tenants and are managed and ready to go. Contact me at 313-422-5562 or aabrams@netzero.com
0 votes Thank Flag Link Sun Mar 24, 2013
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