Â Â Â Â Â Â Â Â Â Take a look at this property--->
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â It's beautiful: new construction, stately, huge and very attractive!
This would seem, upon first glance, like the perfect type of property to buy when investing in Detroit homes.
Â Â Â Â Take a look at the properties across the street-->
Â Â Â Â Whoa!
Here's what typically happens to unaware and uneducated investors:
1. They are shown a property that looks perfect 2. The price is amazingly affordable 3. The home comes with warranties, guarantees, and a host of other features that make it seem like a safe investment
They purchase the property and get stuck with the reality of what they've bought.Â
And then there are tears....many, many angry and bitter tears.
Even in Investment Real Estate, the three most important aspects are still Location, Location, Location.
So when someone is attempting to sell you property, in order to safeguard your investment, you must check out the surrounding homes.
The surrounding neighborhood is what is most attractive to potential tenants or homeowners.Â Dilapidated homes, burned out houses, and open vacant properties attract theives, vandals, and squatters.Â
This is unsafe for your tenants and will always be a point of concern. The reality of a bad neighborhood will slowly creep into and affect your property's desirability, tenant retention and the security of the home.
It is much easier to buy the worst home on the best block, than buy the best home on the worst block. You cannot easily change the other surrounding homes, but fixing up your property will be a breeze!
Remember to always get the following when purchasing homes in and around the City of Detroit:
Pictures of the homes next door, across the street (always not any vacant or burned homes on the block)
Comparable sales of homes similar to your property in the past 6 months (less than a 1/2 mile away)
Comparable rental properties leased in the past 6 months (less than a 1/2 mile away)
These essential items give you a comprehensive view of the overall area.Â As values increase, it doesn't happen home by home, it happens block by block.
Choose your neighborhoods and properties wisely.
If you need help choosing the right investment properties, contact our team anytime!
Good Luck and Happy Investing!
Patterson is a licensed Realtor in Michigan. She currently holds
certifications as a Certified Investor Agent and Certified
Foreclosure/Short Sale Resource.
She has sold hundreds of
Investment Properties to Investors from all around the world andÂ loves
them invest wisely for immediate cash-flow, as well as long-term gain.
Letitia's mission is to help make Real Estate millionaires!