Ready to buy an investment property in the Metro Detroit area? The location of the property will have a huge impact on what kinds of profits you’ll be able to attain. In our latest post, learn how to choose the right neighborhood for your investment property in Metro Detroit.
When deciding where to buy, it’s important to consider more than your opinion of the area. While you should like the neighborhood, it needs to be a hit with potential renters too. Some of this can be judged by putting your feet on the ground and exploring the neighborhood for yourself. For other things, you will need to take a look at the numbers. Keep reading to explore our tips for choosing the right neighborhood for your Metro Detroit investment property.
What does the rental market currently look like? Are there many homes available for rent? If so, it will tell you that the demand is low, and you will possibly have trouble finding tenants for your property. Ideally, you will want to have a property in a high-demand area. There should be few, well-priced rentals or listing on the market for you to have to compete with. Having the right property in a high-demand area is sure to generate profits for years to come.
Even without kids, living in an area with a good school district will help to ensure you are in a quality neighborhood. There are many ways to check out how schools in your buying area are ranked. Great Schools is an excellent resource that offers rankings based on a number of factors. It is a great way to get a quick snapshot of the schools in your area.
The area in which you buy your investment property should have a strong job market with even more growth on the horizon. This ensures that your tenants will be able to find a long-term and well-paying job. Critical things if you want to receive your rent payment each month! You can check with the local chamber of commerce, local classifieds, and the US Jobs Report to get a better understanding of employment in your area.
The property should be in a convenient location. You will attract many more prospective tenants and/or buyers in a place that is easy to get to than you will in a remote location. Shops, restaurants, and access to major roads are all great things to have nearby. Walkability is a huge factor and can really increase the response to your property. A property with many things in the area will be much more in demand than a house located in the middle of nowhere.
More and more people are choosing to rely on public transportation to get around. If there are viable options within your city, make sure your property is in close proximity. Many renters, especially those of younger generations, will be looking for houses specifically with easy access to public transportation. Whether it be a train, subway, or bus-line, being able to get around without a car is becoming more and more appealing.
You will want to purchase a property with a great neighborhood and lots of things to do. There should be great parks, sidewalks, and other amenities that make people want to be there. If possible, stop to chat with neighbors you see out and about. Of course, you don’t want to bother anyone, but if you’re able to get the low down from a local, you’ll be more likely to find a great property in a great location. You will also be able to get a feel for what your neighbors may be like. Some people like a neighborhood where everyone knows everyone, while others prefer a more quiet and private space.
Nobody aims to live in a high-crime area. While you will likely be able to find affordable properties in these areas, you’re not as likely to find buyers or tenants who want to live there. Check out the crime rates for your neighborhood using sites like Crime Reports and Neighborhood Scout can give you a good idea of what to expect in your area.
Before buying, do as much as you can to understand what future development in your area will look like. New homes and businesses will have an impact on property values and the amounts you are able to charge in rent. Check with your city and county to learn more about development plans for your area. Buying in an up and coming part of town is an excellent way to secure high a return on your investment. By understanding whats coming, you’ll be able to find the property that is right for you.