which strategy makes the most sense to you?
Hey What’s up Detroit Real Estate Investors and welcome to the Buy Homes In Detroit blog. Here are some Simple Steps on how You can build up your Detroit Real Estate Portfolio.
There are a few different strategies that you can use to go about building up your portfolio of cashflowing investment properties here in Detroit. Here are just 2 great strategies to do so:
1. Purchase vacant properties, rehab them, tenant them and put a property management company in place to manage your property (or be the landlord yourself). This is a great strategy if you are living in the area of Detroitbecause it is more of a hands on investing strategy up front. If you do not live near the Detroit market, then the second strategy below may make more sense to you.
- Pro’s: You will most likely be able to acquire and rehab these properties for lesssince you are purchasing vacants and performing the rehabs yourself. This means that your return on investment will most likely be a little bit higher than if you purchase a turnkey property
- Con’s: You are not cashflowing on Day 1 and many variables and unforseeable things can come up during the rehab and tenanting phase. It may take 60-90 days before you have a cashflowing investment property with a happy tenant inside
2. Purchase turnkey investment properties in Detroit. These homes are already rehabbed and tenanted with leases and property management in place. Like I mentioned above, this strategy works very well if you do not live in the Detroit area and would like a more “passive” real estate investment that is cashflowing from Day 1.
- Pro’s: You are cashflowing the day that you purchase the property. This is more of a “hands-off” investing strategy to ensure that your “passive” incomeis as stress free as possible. When purchasing turnkey deals in bulk, you can get an even better deal which will increase your ROI!
- Con’s: Your overall purchase price will most likely be a little higher since the home is already tenanted and rehabbed with leases and property management already in place. You also need to be careful with which company you purchase turnkey inventory from and make sure that the homes are truly tenanted with a real lease in place. Also do your homework on the property managment company that is managing your rental properties
Which of the 2 scenarios listed above makes the most sense to you to start building up your Detroit Real Estate Investment Portfolio? Each strategy has it’s pro’s and con’s, you just need to see which one makes more sense to you. Keep in mind that you can also wholesale and flip homes to increase your capital for your buy and hold investment properties.
If you are interested in pursuing either of the 2 strategies listed above and really start building up your Portfolio with Detroit Investment Property, email: Ryan@InTheNowInvestments.com and request a 30 minute strategy call regarding how we can assist you in creating wealth through Detroit Real Estate Investments today.
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!
Can’t seem to locate any of your available properties? Thnaks in advance
George,
Thanks for reaching out. The reason that we don’t post our properties on our website is that they move very quickly and by the time we post a property, it’s already been sold. I’ve sent you a quick email with the latest deals that are available in the Detroit area. Thanks and have a great week!
Matt