Mayfair Group - Detroit Investment Properties Top Tips

By Author: Bruce Wills
Total Articles: 52
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Buying real estate in Detroit neighborhoods can be beneficial to investors as they can provide High yields for a low initial investment amount. So let's say you've found a property in a low Income neighborhood and as a result of due diligence you realize the property is in excellent Condition and will bring positive cash flow. Now the question is: Should I buy it?

Before you do, consider these tips and determine whether or not they apply to your potential investment property in Detroit.

This article is not about how to find deals in today's market. Anyone with a pulse can find an Undervalued property in this current real estate environment. This section outlines guidelines and potential warning signs when purchasing real estate in low income areas.

1. Invest in areas that are in close proximity to schools, shopping centers, and highways.

2. As a general rule, don't purchase property with a fire damaged home as a neighbor. Fire damaged homes are usually slow to sell in this economy due to the large inventory of foreclosures and bank owned properties on t he market. Because ...
... cities are strapped for cash, these properties probably won't be torn down anytime soon.

3. Too many vacant properties on a block are also a red flag. In this market it's hard to avoid vacancies even if the best neighborhoods but try to stay away from sit uations where vacancies equal occupied homes on a single block.

4. WATCH OUT FOR TRAP HOUSES - A trap house is a slang term f or a house that has illegal activities. These types of properties can be identified by high traffic volum es in and out of the properties. Trust your gut when looking out for these types of properties. If the area you invest in has lower traffic and a nice mixture of home owners verses renters, you shouldn't have a problem with trap houses. People who do illegal activities generally don't target areas where neighbors have pride of ownership.

The best aspects of the Detroit property market

In Detroit today, you can purchase great properties from $25,000 to $45,000 and generate rental yields of up to 35%.

Did you know?

With Detroit properties, returns start from 20%+ upwards including full rental m anagement. In most property markets, a 5% return over is barely achievable after costs.

Luxury detached family homes, which are being repossessed in good Detroit neighbourhoods.

These are acquired by investors at unbelievable prices.

Unlike in the UK, banks or lending institution regularly write off the majority of the mortgage value and sell the property for a fraction of that debt. Sometimes even as low 10 - 20% of the
original loan value!

In Detroit, the U.S. government is providing a $8,000 credit for people wishing to buy their own house, For tenants the US government is subsidising to pay their rents!

You don't have to live in America to own and rent it. You don't have to be an American citizen.

For further information please log onto www.mayfair-group.com,
email: info@mayfair-group.com, myfairgroup@gmail.com or call us on +44 207 183 3990

Mayfair Group. Reg. No. 6609354. Registered in England.
Registered Office: Berkeley Square House,
2nd Floor, Berkeley Square, Mayfair, London,
W1J 6BD, United Kingdom, www.mayfair-group.com