I’M SO TIRED OF HEARING HOW WONDERFUL DETROIT PROPERTY IS!
SERIOUSLY.
With all the misinformation circulating regarding Turn Key rental houses in the Detroit, I decided I had to act to set the record straight.
Because there’s a lot of crap being slung around. And I’m tired of seeing it. I’m tired of hearing it. And I’m tired of getting asked about it.
I mean, I’ve been buying suburban rental properties in Metro Detroit now for seven years. The best houses, in the best school districts, at rock bottom prices. I’m getting the best long-term tenants and I’m charging the highest rents.
And try as I might, I can’t seem to even get close to the ROI “projections” being pitched by the guys selling crappy Detroit houses with Section 8 tenants.
I wonder why that is? And I wonder why they never use actual numbers? Strange.
My point is, to counteract all of this “information”, I decided to put together a series of posts that walk through the issues and questions with respect to getting started buying turn key rental properties in the Metro Detroit area.
I call those posts the “6 Steps to Getting Started With Turn Key Rentals In Metro Detroit“.
Now I don’t pull any punches in the steps, because investing in Metro Detroit has a ton of risk if you do it wrong, if you buy from the wrong people, or if you listen to the wrong people. Just ask any of the dozens of people from out of state and out of the country that got ripped off when they bought here.
So I hope these steps can save good people from making some big mistakes trying to do the right things.
Here’s the thing. Done right, buying rentals in Metro Detroit SUBURBS makes more than a lot of sense. I know that because, like I said, I’ve been buying here for years and have been cash flow positive every single month since I received my very first rent check.
And the case for buying rental houses here is actually better now than it was when I started. For three big reasons:
1. Cash Flow
Cash flow in the suburbs is off the charts good. I don’t know of another area in the entire country that generates the cash flow, or ROIs, that suburban properties here do.
2. House Prices
This area has suffered greatly during the foreclosure crisis. We’re likely at or near the bottom, so further decreases in value are highly unlikely. And so what if they happen? What’s a 20% drop in value on a $50,000 rental house? That rents for $1000 per month? Certainly not anything close to the end of the world. Especially when you have 50% (or more) downside protection on your rents before you break even.
3. Rental Demand
Also because of the foreclosure crisis, rental demand is strong – in the suburbs. And it’s projected to stay that way for years. But it depends on where you buy, as always.
My goal in this is not to make the case for buying here. If it’s not for you then it’s not for you, and I don’t have any desire to convince you or argue about it.
But if you’re thinking about buying here because you see the opportunity, then you should pay attention to these posts. They could help you avoid mistakes that could cost you thousands of dollars and years of headaches.
So stay tuned for Step 1: DON’T BUY IN THE CITY OF DETROIT!
