Home Buying in Detroit>Question Details

Ningwang, Home Buyer in Detroit, MI

The price of the properties are low .But how about other costs?Is the tax very high or is it very expensive to maintain the property?

Asked by Ningwang, Detroit, MI Sat Mar 16, 2013

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Letitia Patterson’s answer
Hi,

Yep. The prices are extremely low. This should be your first tip-off :-).

Compared to other places around the globe Metro Detroit investment property is ridiculously affordable. However, when property prices are presented as just too good to be true, there is usually something amiss.

So, each investment property has the following characteristics by which you'll evaluate the strength of the investment:

1. Location/Neighborhood
2. Price
3. Repairs
4. Title
5. Tenants

So, let's say the price is super low (under $5000). That will usually mean one or MORE of the following:

1. There is a ton of repairs to be performed
2. The property is in a horrible neighborhood
3. The title is not clear somehow and there are past due taxes or water bills due
4. The tenants are non-performing and need to be evicted

Keep in mind, even in a great market, prices for the better quality homes is consistent.

You won't see the average turnkey rental property selling for $10,000 here, so if you do see something akin to this advertised, just know that one of those other areas may not be fully intact.

Time= Money. So the longer it takes to rehab or tenant a property means that you make less money and spend more time fixing issues.

It may be worth it to take a short-cut occasionally, but buying right in the beginning saves you a world of trouble in the long run.

If you need help choosing the right investment properties, contact our team anytime!


Good Luck and Happy Investing!



Letitia Patterson is a licensed Realtor in Michigan. She currently holds certifications as a Certified Investor Agent and Certified Foreclosure/Short Sale Resource.

She has sold hundreds of Investment Properties to Investors from all around the world and loves helping them invest wisely for immediate cash-flow, as well as long-term gain. Letitia's mission is to help make Real Estate millionaires!



Join our mailing list or request Investment Properties

Letitia N. Patterson
(la-tee-sha)

Office: 248-905-1531
Cell: 248 506-9426
Email: myrealestateteam1@gmail.com
1 vote Thank Flag Link Tue Mar 19, 2013
Are you a Chinese? hah
A lot of Chinese people are going to buy properties in Detroit.
0 votes Thank Flag Link Wed Mar 20, 2013
Prices are low in many areas. When you speak of cost are we speaking about rehab cost or what? Its not expensive to maintain the property just depend on what you are looking to do with the property. Taxes vary from property to property. If you have any specific questions and are looking to become a home owner or looking for a investment property please give Vanessa Brown a call at 248.660.0268 cell. I work closely with both.
0 votes Thank Flag Link Mon Mar 18, 2013
good one. i wanna ask the same question. can a oversea buyer buy properties in the US btw?
0 votes Thank Flag Link Sun Mar 17, 2013
Detroit properties are low and some have high taxes. If you buy the right property and do yearly maintenance it will keep your cost down. Contact me if your looking for investment properties. 313-575-2336
0 votes Thank Flag Link Sat Mar 16, 2013
Keep in mind, homes are a liability. You constantly need to maintain the home. I have valuable inforamtion for buyers on my webiste at http://www.pamsawyer.com. In regards to taxes, if you have a price in mind,you can call the city assesors office where you want to move and ask them if you pay X for a home, what will the taxes be. Part of maintenace is be aware of age of roof, windows doors, bathrooms, and kitchen....they are the most expensive to improve or replace.
0 votes Thank Flag Link Sat Mar 16, 2013
The taxes are a crazy thing i am involved with investors and taxes kill the deal more times than not.
If you purcahse a property that has been rehabbed and is tenant occupied it is just a matter of standard up keep. Many investor are buying properties and are not doing there 'due diligence' and they are getting burned big time.

If i can be of assistance to you please contact me.

Thank you
Bob Schweiss
Remerica Hometown One
Schweiss.r@gmail.com
0 votes Thank Flag Link Sat Mar 16, 2013
Hello Ningwang

It depends on the property. What part of Detroit are you interested in?
Please contact me at 586 663-3433 or email me pennysbradley@yahoo.com

I have a property with land contract terms that is available.
Best Regards
Penny Bradley
RE/MAX in the Hills
0 votes Thank Flag Link Sat Mar 16, 2013
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