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Reasons to Invest in Detroit, Michigan
The city of Detroit is ripe with opportunity. A current and momentary lack of liquidity in the mortgage market has created unprecedented market conditions.
Investors are dictating acquisition prices while rent levels stay constant. The result of these factors is above average rental yields with the potential for long term capital appreciation. One can acquire a fully renovated property in this market for 25% of what it once traded for. A well informed investor will understand the phenomenal opportunity in this market because of a unified and strategic effort of revitalization of key neighborhoods by the city, state, and federal governments NeighbourhoodsProperties are being acquired only in strategically selected locations and each house is individually inspected to ensure the asset and location fits the investment strategy. Although these significantly deflated prices are available in virtually every neighborhood in Detroit and some surrounding communities, properties are not acquired without understanding the market dynamics of that particular micro-market. A house simply being “cheap” is not sufficient motivation to justify a purchase.
The target neighborhoods are those with a strong historical basis. Target neighborhoods are well maintained, working class neighborhoods in which community pride is evident. The characteristics upon which a neighborhood is evaluated include historical rates of owner-occupancy, population trends relative to competing neighborhoods, market rate home sales prices on a six month trailing basis and current rental rates to name a few. A few such target neighborhoods, in Detroit, for example, as detailed in the most recently available census data, experienced population growth of 13.5%, 4.8%, 16.9% and 12.2% during a period in which the city as a whole decreased in population by 7.46%. This in part illustrates the attractiveness of these neighborhoods within the city. Each house that is acquired is individually inspected and a detailed renovation budget is established prior to acquisition to ensure compliance with the investment model. Each house is evaluated as though it would be owned on a long-term basis. |
Neighbourhoods We Buy In
Facts
“Rent is expected to rise about 12% over time. Average return on rentals will be about 4.4% higher than the national average.” -CNN Money
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Turnkey Investment Properties in Detroit, Michigan
The following is our most current inventory of properties. All these properties have been fully renovated and have tenants in place with a one year lease.
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$45,000
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Insurance $600
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$43,000
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Insurance $600
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