There are also investment opportunities in the suburbs of Detroit which can net a return of 15-20% ( More if you do your own property management and/or minor re-hab).Taxes and Insurance are generally lower and monthly rental rates higher than the City of Detroit. It is definitely a good time to invest in property. You do want to invest in a desirable location for rental purposes and future resale. I suggest to investors of single family homes, that they get a house with a minimum of three bedrooms, basement and a garage. Call or email if you have any questions.
Keller Williams Realty
Chances are good because there is a lot of property available in the market.
The average estimated annual tax is 1,250 GBP or 1.800 USD on the example below.
Typical Example 3-bed, 1-bath family home
â€¢Purchase Price: Â£ 25,000
â€¢Annual Rental Income: Â£ 6,000
â€¢Est. Annual Tax: Â£ 1,125
â€¢Est. Annual Insurance: Â£ 250
â€¢Annual Management Fee: Â£ 600
â€¢Net Income: Â£ 4,025
â€¢Total Net Yield: 16,1%
To answer your third question, "are properties rented easily to client?", Yes but it is essential to choose a reputable supplier and well established organisation to ensure maximum benefit and a hands free investment.
VISIT our link below for an instant download of our investment brochure with current available Detroit Buy to Let properties.
The Premier Team
There are plenty of options to purchase investment properties in the city of Detroit. The cost to buy these properties is actually very low compared to many other areas in the country, and you can usually buy a property that has been completely rehabbed, with a tenant in place for around $40,000 USD. The average return on investment for a Detroit rental property is between 14-20%. We have one for sale right now that is $42,000 USD and being rented for $900/month. This particular property is producing a 20% return.
Taxes vary by area. One thing you will want to ask before buying any property is what the actual taxes are. Also, if you are working with a reputable company, they will work for you to fight to have the taxes lowered for you if they are currently too high. I have a property for sale currently in Detroit where the taxes are $1755 USD/year. Obviously not too bad. Many are around $2,000 USD or so per year. Again, they can almost always be lowered.
Renting Detroit properties is currently the easy part. There are over 8,000 families approved for the Government Section 8 housing program, which pays the rent directly to landlords. Right now there are way more renters in the pool then there are homes for them to rent. When I post a new property for rent in Detroit, on average I receive 20 phone calls about that property. If it's in one of the better neighborhoods (Rosedale Park, etc) that number doubles to between 40-50 calls.
We are located right in the heart of Detroit, and have over 20 years of Detroit investment experience on our team. If we can help you purchase an investment property in Detroit, please let me know. Give me a call, or shoot me an email.
Also you may want to download the free report from our website titled "How to maximize your returns with turn- key rental properties in the city of Detroit". That can be downloaded from our website:
Nathan J. Mazur
nathan [at] detroitcashflowproperties.com