Home Buying in Detroit>Question Details

Didrik Fryde…, Other/Just Looking in Outside U.S.

i am an investor how want to buy properties with good cash flow. Could any of you give me some advice of the pro and cons?

Asked by Didrik Frydenlund, Outside U.S. Sat Oct 23, 2010

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Nao,

Now is the perfect time to buy in Michigan. Foreclosures have driven prices down in Michigan, and there are a number of economic signs that the economy is turning in Michigan. For instance, Ford Motor Company just announced 3rd quarter profits of 1.7Billion yesterday and along with that came the announcement of more than 2000 jobs in the metro Detroit area spurred on by tax incentives to automakers and their suppliers.
You need to be careful, and obtain guidance from reputable companies. Additionally, I would highly recommend you actually travel to Detroit to get an idea of the properties and areas you will be investing in as well as meet the manager of your properties.
I would be happy to assist you as we specialize in helping out of state investors properly setup cashflowing investments, and as Mike Warren mentioned below, you can achieve returns of 12-20%, but you need to be on top of things with the right people in place to manage the investments.

Todd Brittingham
todd@michiganpropertybuyer.com
http://www.MichiganTurnkey.com
1 vote Thank Flag Link Wed Oct 27, 2010
Pros would be there are lots of opportunities with good potential, Cons would be you are one of thousands looking to do the same thing right now. Finding renters who actaully pay on a consistent basis is getting harder by the month, and laws are going more and more to the favor of the tenant.

Remember, getting a property to cash flow is much different that having the concept that the property will cashflow on paper. Good property management companies can help, but the best generally charge the most because they know they are worth it.
1 vote Thank Flag Link Sun Oct 24, 2010
first you need t find a nice property manager. otherwise, you will lose a lot of money. i have seen a lot of investors who lost money in detroit.
0 votes Thank Flag Link Sun Oct 24, 2010
Hi Didrik

Now is a very good time to purchase rental properties with cash flow, you can generally get a return of 12-20%, depending if you have a mangement company handle the rental. Purchase prices for single family three bedroom houses, with basement and garage would range from $20,000 to $60,000 and would lease
at a monthly rate of $850 to $1,100 a month. If you would like, I can email more detailed information (with no obligation) about purchasing rental properties in the western suburbs of Detroit Michigan.

Sincerely,

Mike Warren
Keller Williams Realty
email : mikewarren@kw.com
0 votes Thank Flag Link Sun Oct 24, 2010
Right now it's a great time to buy, interest rates are low and also the prices. I think two or three years from now prices are going to get higher. If you have at least 20% down I think it's a good time to by up to four units.
0 votes Thank Flag Link Sat Oct 23, 2010
This would be the perfect time to buy two units and above, primarily because of interest rate are very low and with multiple units, if one unit is vacant you can still get income from other units to pay your mortgage. Start with anything that is not to old of a property and already tenant occupied.
0 votes Thank Flag Link Sat Oct 23, 2010
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