Many people are thinking of buying Metro Detroit investment properties.  But  what makes a good investment property?  I am going to focus on long term appreciation.

If you are going to buy a investment property for long term appreciation then here are some of the items and questions you should be asking yourself.

1. Can I get positive cash flow out of this property?
2. Is the investment property in good structural condition?
3. Will the area that the home is in be a good area in five years? ten years?
4. Does the area have a good school system?

If you are looking for long term appreciation you want an area that will be stable for years to come.  You want the area to be where people want to move to.  Middle class Americans want to buy homes where their kids can go to school.  A good school system.  A place to raise their kids.

Which Metro Detroit citieswould you think home buyers would want to live in?  Do you think middle class Metro Detroiters would want to buy a home in the City of Detroit?  Or would they prefer to buy in a different city?  Which cities do you think an investment property will appreciate more in.

These are key elements in long term appreciation of Metro Detroit Investment properties.  

I got a call today from a home buyer. He was looking at million dollar lake front homes.  He had cash money.  But he wanted to offer $500,000 on the home.   What are you crazy?  You are going to be wasting your time.  You don't want to insult the seller so he won't negotiate at all.  You want to buy the house right?

Here are the latest statistics on 10 Metro Detroit lake front homes in the million dollar to 1.5 million dollar range in the last six months

Listed price                         Sold Price

1,150,000                         1,060,000

1,169,000                         1,169,000

1,250,000                         1,175,000

1,350,000                         1,125,000

1,098,000                         1,080,000

1,199,900                         1,075,000

1,995,000                         1,500,000

1,595,000                          1,300,000

1,500,000                         1,305,000 

1,950,000                         1,400,000

I haven't seen anybody accept a 50% below offer.  If you notice the above prices most of the homes went for about 10% or less.  There are a two that went for 25% & 27% less. 

As your buyers agent I will put in whatever offer you want on a home.  But if you look at the statistics of all the latest Metro Detroit lake front homes none sold for less than 27% off.  So you would be better to put in a 35% or 37% below list price offer if you are trying to steal it.

Many of the other buyers would have just laughed at you.  50% below offers will not get the home you want.  If you want a Metro Detroit home ( whether it is lake front or not, or $100,000 or $1,000,000) sometimes you may have to pay a little more than 50% off the listed price.

My thought of the day  

Simple Friends and Real Friends

When buying Metro Detroit Real estate it is important to look at the basement.  When looking at Michigan foreclosures it is especially important because they sometimes steal parts of the house.  It is not unusual for furnaces, water heaters, or copper plumbing to be missing.

Here are some items to look for:

• Is there standing water?
• Are there stains on the ceiling tiles?
• Is it copper or galvanized plumbing?
• Is the furnace there?  Has it been updated? Or is it old? 
• What is the electrical panel like?  Is it fuses or electrical breakers?  How many amps is it?  Is there room in the box to add a circuit?
• Is the water heater there?
• Are the basement windows block windows or glass?
• Is the basement walls block or a poured wall?  I believe a poured wall is a better basement.  It is easier to fix cracks and rod holes in a poured concrete wall.
• Is there evidence of water leaks on the wall?  Is paint bubbling or peeling?  A sign of water leakage?  Look at paneling or wood work to see water stains.  Are any woodwork that is warped?  Again a sign of water damage
• Is there mold in the basement?
• Is there a sump pump?
• Has the basement been recently painted?  May be a way of covering up old water stains.
• Are there floor tiles loose and coming up?  Sometimes this is a sign of water leakage
• Does it smell musty or moldy?  If it smells that way it may have mold or water isssues.

 Mold on drywall.

Sometimes basements are drywalled, paneled, or painted that covers up signs of water damage.  Look for other signs like a fan plugged in. 

So when buying a metro Detroit home check out the basement carefully and be sure to hire a home inspector.  The $300 or $400 cost of a home inspection will sometimes save you thousands 

Are you looking for the best home deal?

Dollar for dollar I am seeing colonial homes going for some great prices.  A 1000 square foot ranch in many  Wayne County and Oakland county cities are still fetching $125 -150,000.  Though in cities like Dearborn Heights, Garden City, Redford, Garden City and Westland MI you can find ranch homes for less.  In some cities you can find bargain Metro Detroit ranch homes 900 -1000 square foot as cheap as $70,000.

Colonial homes in many cities are a steal.  The question for you is can you afford to move up to a higher price range.  Most Metro Detroit colonials start in the 1700 square feet range.  I am seeing bargains up to the 3500 square foot colonial homes.  Today I was pricing out a clients home.  I was looking through recently sold Farmington Hills colonial homes.  The range I was looking at was 2600 -3000 square feet.  Here are some of the bargain Farmington Hills colonials I saw:

•  2900 sq ft Farmington Hills foreclosure that sold for $220,000
• 2868 sq ft Farmington Hills foreclosure that sold for $207,000
• 2793 sq ft fully updated Farmington Hills colonial home for $270,000

Here is a Metro Detroit colonial home that had an updated kitchen, updated bathrooms.  A beautiful Farmington Hills colonial.  A colonial that was completely updated and ready to move in for less than a $100 a square foot!  Now that is a Metro Detroit real estate bargain!

You can find bargain colonial homes in Canton,  Livonia real estate, and even in Plymouth Michigan

Feel free to search over 60,000 Michigan homes for sale or email me  to get your personalized list of Metro Detroit Foreclosures  info@RussRavary.com

Detroit suburbs condo bargains

I am not a big fan of Metro Detroit Condos.  That is until now.  Metro Detroit Condosare bargains now.  In the last few monthes I have been helping some of my clients buy condos for as low as $50 a square foot.  We bought a 1580 square foot Northville condo last month for $79,000.  Today we bought a 700 square foot Livonia condo for $37,000.  In April I helped a client buy a brand new 1800 square foot Canton condofor $180,000.  The Canton condo had new applainces, granite counter tops, ceramic tile floors, and a main floor master bedroom.  All for  a $100 a square foot..... brand new.... never lived in.

I used to  think that there was not much appreciation in Metro Detroit condos.  But if you buy them at some of these prices I don't believe you will go wrong.  Whether you are young or old, some of the condo benefits are great.  Who wouldn't like to forget about taking care of the outside of your home.

So if you are looking for a metro Detroit condo email me INFO@RUSSRAVARY.COM or call me on my cell (313) 310-9855