I am thinking of buying a house in Allen Park Mich. as a rental. House is listed at 114K. A 105K offer fell thru. What is a competitve cash offer?

Asked by West, Allen Park, MI Sun Apr 3, 2011

What is a competitve monthly rental rate?

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Michael Warren’s answer
Michael Warr…, , Novi, MI
Mon Apr 4, 2011
Hi West

As the others have stated, without knowing the exact details of the house it is hard to determine the value of the house for purchase and renting. Paying that much for a rental house, paying non-homestead taxes, insurance and maybe a mangement fee, may not leave much of a return on investment.

Since you are looking at houses for investment purposes (rental/cash flow), you may want to consider purchasing two or three houses in the $25-40k range and renting them out. You should be able to get a good return on investment (15-20%) and have a more diversified portfolio.

Call or email if you have any questions.

Sincerely,

Mike Warren
Keller Williams Realty
734-634-5868
email: mikewaren@kw.com
0 votes
Karen Paytas, Agent, Clinton Twp, MI
Sun Apr 3, 2011
In response to you initial question more information would be needed to determine a competitive cash offer. You should use the services of a qualified buyers agent to give you this information so that you can make an informed decision.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes
Karen Paytas, Agent, Clinton Twp, MI
Sun Apr 3, 2011
Current active listings for lease in Allen Park are between $750 to $1550. per month depending on the home. Completed leases within the last 6 months are between $800-1400 a month again depending on the home.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes
Don Tepper, Agent, Burke, VA
Sun Apr 3, 2011
Check with a Realtor to determine what the house is really worth. Don't assume it's worth $114,000, or even $105,000. Maybe the deal fell through because the appraisal came in under $105,000.

Beyond that, it'll help to know such things as seller motivation, how long it's been on the market, etc. So it's really impossible to say what a competitive offer would be.

Hope that helps.
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