Detroit Real Estate

Here are a few secrets to buying Metro Detroit investment properties and what not to do.  Buying Metro Detroit investment properties can be frustrating, so hopefully this will make the process easier for you. 

The best way to win a investment home bid under $30,000 is to pay cash for it.  There are some many investors that pay cash that it is almost impossible to win a bid if you don't pay cash.  Banks will take a cash deal over a mortgage deal even if the cash price is lower.  They do it because they know it will close.   A mortgage deal may fall apart because of appraisal issues and underwriter issues.  You will get frustrated bidding when you need a mortgage.  It has to be extreme luck to win in the under $35,000 without cash. 

If you are secure in your ability to inspect the Metro Detroit home then bid without an inspection contingency.  Again a bank will take an offer without an inspection contingency over an offer with an inspection contingency.  The bank is looking for a sure deal that will close quickly. 

Even though you are buying $35,000 homes still look at the area and city.  You will do better in St. Clair Shores versus Warren below 9 Mile.  You still want the appreciation even though these under $35,000 homes are cash cows.   So think about which areas may appreciate the best.

Lastly buying a Metro Detroit investment property under $35,000 will pay itself off in 6 - 7 1/2 years depending on the interest rate, city taxes, and how much you borrow. (if you are collecting $800 a month in rent). 

Call me or email me when you are ready to start looking.

Russ Ravary - your local Realtor

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