For Buyers

Top Ten Do’s and Dont’s to acquiring investment property in Detroit

1. Buy the neighborhood not the house. Some blocks are better than others, and many higher quality tenants would much rather live on the nicer block.
2. Purchase a brick house oppose to frame. They will appraise higher, and many people prefer to live in a brick home over frame.
3. If you buy a frame house install new vinyl siding on the house. Don’t be cheap trying to paint it. The siding will also better insulate the house, lowering energy costs.
4. Avoid buying a 2 bedroom house they are too hard to rent, and even harder to sell.
5. Try to locate a home with at least 2 full bathrooms. A home with more than 1 bathroom will rent or sell significantly faster.
6. Before buying with hard money make sure you can refinance the loan. You do not want to be stuck with a huge mortgage payment you can not get out of.
7. Look for discount real estate in nearby cities like Southfield, Mi. Southfield has become a twin city of Detroit. Condos, houses, and townhouses are selling for dimes on the dollar.
8. Be real careful hiring contractors to do work in your property. I have had equally bad experiences with contractors whether they are licensed or not. Ask other real estate investors who they have had success with.
9. Never go into a vacant rundown house alone. Go with the contractor and agent. This way the contractor can give you a better cost analysis of what the repairs will cost. If you must go alone, I would highly recommend you carry a gun while looking in these houses. You never know what someone in Detroit is using a vacant house for. Dog fights, drugs, prostitution, warehouse for stolen goods, and anything else you can imagine.
10. Do Your Homework!