Ready to buy an investment property in Metro Detroit? Now is a great time to cash in on the best deals out there. In this post, we offer 5 reasons why right now is the time to buy an investment property in Metro Detroit!
Buying an investment property in Metro Detroit is one of the best decisions you can make as an investor. It seems like everyone is getting into real estate, but there is still plenty of room for those who want to dive in! Keep reading to learn more about why right now is a great time to invest in Metro Detroit real estate, along with some tips to get you started!
Rates Are Low
A great way that many people get started in real estate investment in Metro Detroit, is to use an FHA loan to buy a multi-family property. Using an FHA loan, you will be able to buy a property of one to four units. You will have to live in it yourself for a little while, but you will be able to collect a great income while you do. In theory, your tenants will be paying for your living costs, while you build wealth and equity. Plus, you will get a first-hand look at what it is like to really live there, giving you great insight and the ability to make improvements that will increase the value of the property.
Rental Are In High Demand
All across the country, more and more people are renting than ever before. Some may have trouble getting financing, while others may not wish to deal with the costs of being a homeowner. There are many young people out there who are living a more nomadic lifestyle than their parents did, choosing to travel and explore the world before putting down permanent roots. Of course, you will need to research the neighborhood in which you are buying, but with rentals becoming an increasingly popular option, you shouldn’t have any trouble finding high-quality renters to live in your rental property.
The Economy Is Performing Well
A strong economy means more jobs, which means there are more people out there who can afford to pay you rent. You’ll want to find a rental property in a location where lots of work is readily available. Your tenants need jobs in order to make rent, so you’ll want to make getting to and from work as easy as possible for your tenants. If the house is in a suburb, make sure there is easy access to a main road and an area with lots of commerce.
The Stock Market Can Be Volatile
While many people turn to the stock market to invest, putting all of your money there can be risky. The market is volatile and one day you can be up and the next day lose it all. While it’s a great idea to have some of your money in reputable companies that you trust, it is also a great idea to diversify your investments, pursuing real estate. People will always need somewhere to live. Investing in housing can provide you with a stable income month after month that won’t change when the market goes up or down.
Hesitating Can Cost You
Talk to an active real estate investor and they will tell you that they regret not starting sooner. Many people are intimidated by the process of buying investment real estate, however once you’ve done your research, there shouldn’t be anything else keeping you from making the purchase. By starting your investment career early, you’ll be able to achieve a tremendous about of wealth before retirement.
How To Start?
Research
The first step to real estate investment is to do your research. Study the market, the economy, and the local demographics. Get a good idea of what you are looking for and what you want to pay. Are you looking for a single-family house in Metro Detroit or something with several units?
Know The Numbers
There are a number of ways to know if you are getting a great deal on an investment property in Metro Detroit. You’ll want to learn about Cap Rate, GRM, and the numerous tools investors use to value properties such as a GRM and the 1% rule. When buying investment real estate, it ultimately comes down to the numbers above all else.
Work With A Pro
Working with a professional home buyer and seller in Metro Detroit is a great option for new investors as well as seasoned pros. At Pinnell Enterprises, LLC, we are able to offer some of the best investment property available, all at a price investors will love. No matter what you are looking for or when you wish to buy, our team will handle the legwork so you can purchase your new Metro Detroit investment property quickly, without any hassles or delays!