Home Buying in Morningside>Question Details

Erol Bati, Home Buyer in Turkey City, PA

Hello, I saw your listings by chance.I have a couple of questions.

Asked by Erol Bati, Turkey City, PA Sat Jan 22, 2011

1- I am not an American citizen and I am not living in U.S.Can I buy a house in Detroit?
2- I saw houses starting from USD12.000.If the price on the listing is USD12.000,Is that the whole amount I have to pay or are there any other expenses to buy the house.
3- Can I buy more than one house and Can I rent them?

Thanks a lot for your time.

Erol Bati

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BEST ANSWER
Hi Erol

1) Yes, non U.S. citizens can puchase houses in the United States.
2) Decent Investment Houses in Detroit can be purchased from $5,000 to $15,000. They may require additional work/repairs (anywhere form $1,000 to $10,000 or more) to get them in a condition to rent and pass city inspection. They would generally rent (depending on the house and location) from $500-$850 per month. Decent houses in communities adjacent to the city of Detroit can be purchased from $15,000 to $30,000. They would generally rent (depending on the house and location) from $750-$1,000, Other expenses at closing would be recording the Deed (around $25) and any city inpsection fees ($200-$500).
3) Yes, you can buy more than one house and rent them. Rental management companies generally charge one months rent and 10% of the monthly payment. A good management comapny is worth the money, especially if you are an out of the area owner.
Email if you have any further question or need additional information.

Sincerely,

Mike Warren
Keller Williams Realty
email: mikewarren@kw.com
0 votes Thank Flag Link Sat Jan 22, 2011
1. Yes you can as long as it is cash. i would advise setting up a LLC for tax purposes. Be VERY careful of what and where in detroit you buy, many areas of detroit are declining and WILL NOT make smart investments, BEWARE of scams as well.
2. title costs, repair costs, property preservation costs (snow removal, board up, winterization ect..) each home is case by case but always plan for 1-3,000 in costs not including repairs.
3. Yes you can buy as many homes as you wish, if you plan on more then 1 i would strongly recommend using a property management company to be your eyes and ears on the ground. Detroit is a ever-changing city and you will need local assistance to keep up with the tenants, market values, and property condition.

i have completed 150+ over seas transaction and have multiple homes and programs to custom fit each investor. Whether you are looking for yield or growth, rentals, flips, or land contracts we have a average of 14-19% ROI on our properties. Please contact me with more information of what you are looking for and i will be happy to assist you.
0 votes Thank Flag Link Tue Feb 1, 2011
1) Yes, unless Detroit has recently put into place laws to the contrary, which I doubt. You might run into a little trouble if you need to finance a loan, however.

2) There are other expenses - taxes, broker fees, inspection fees, and other miscellaneous costs. The list price is not the final sum. However, there's always room to negotiate price.

3) Yes, you can buy more than one house. Yes, you could rent them out *in theory*. However, it's extremely difficult for an out-of-state (let alone out-of-country) landlord to lease a property. You might need to employ a property management company, which adds to your costs.
0 votes Thank Flag Link Sat Jan 22, 2011
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