Why Detroit Real Estate is Ripe for the Picking in 2012

4 Major Indicators that Detroit Real Estate Investing is going to be a hot commodity in 2012:

Price – So I am pretty sure that you know by now that Detroit Real Estate is one of the most inexpensive places to buy right now.  These basement level prices are obviously not going to stick around for much longer so right now is definitely the best time to take advantage of really low real estate prices in and around the city of Detroit.

Rents – Detroit rental rates are pretty amazing if you ask me.  Whether it is a section-8 tenant or not, you can expect to bring in over $750/mo. as long as you are buying in the right neighborhoods.  We have seen many homes bring in well over $850/mo. as well.  Another key is knowing how much the annual property taxes are for your rental property here in Detroit.  Try not to buy properties that have $3,000+/mo in taxes if possible so you can keep your cashflow and ROI as high as possible.

Jobs – If you have been paying any attention to the Detroit news and what is going on there locally, you have most likely seen an influx of new businesses and jobs that are coming into the city.  Detroit has been adding thousands and thousands of new jobs and bringing a lot of stimulus back into the city.  More workers and a stimulated economy really benefits the real estate investors that own property in the area.

International money – This should not be a shock to you…there are a ton of foreign buyers that are jumping all over the Detroit Real Estate Investment opportunity.  In many of these countries, their markets are at the peak so they are looking towards the US (since we are pretty much at the bottom of our market) and seeing the huge upside of investing in a down market.  Also, their currencies are approaching the same value of the US dollar so they can get even more here in the USA for their money at this time.  Watch for a huge influx of international buyers this year in Detroit coming from China, Russia, Canada, Australia, UK, etc. If you can cater to these buyers, you have a great business model for success in 2012!
 
Ryan and In The Now Investments have been in the Detroit area for about 4 years now and has completed over 320 deals in that time. If you ever have any questions about Detroit Real Estate Investing, don’t hesitate to contact us at any time. Happy Investing folks!