5/20/12 BP Newsletter: Pacing Your Investments, Increasing Profits, & Speeding Up New Deal Screenings
Hide thisHow Vacant Is Detroit?
Tuesday, July 27
Reprinted from http://blog.mylandlordinsurance.com.
There are a lot of investors looking at Detroit as a great place to buy cheap real estate. The thinking is if you can purchase a home with renovations included for $35,000, you can quickly turn a profit. Most homes in Detroit are brick, beautiful, 2 stories, and usually over 2,000 sqft. As a section 8 property the going rental rate is between $1000-$1400 a month. That is roughly $12,000 a year. In three short years the property would be paid and any future rental income would be 100% profit with the property having a resale value of about 50,000 if rented with a good tenant. Sounds great.
There's few problems with this plan:
(Summarized)
Insurance and Taxes
27% of homes are vacant
Lack of employment opportunities
Solution:
Rebuild City from Center. Consolidate public resources and reduce supply by demolishing vacant homes.
To get a more detailed description please read our blog. http://blog.mylandlordinsurance.com
Comments
Donald Stevens
Great Lakes Insurance Group Agency
Kalamazoo, Michigan
| Website: | http://www.mylandlordinsurance.com |
| Phone: | 269-383-2139 |
| Fax: | 269-383-3002 |
My Status
Someone should tell him thats not a garage! The small door should have been a clue. http://t.co/H3R1j0rd , posted about 1 month ago.Categories
- · Homeowners Insurance (3)
- · Landlord Insurance (1)
- · Types of Homes (1)
- · vacant property (2)
Archive
- · September '10 (1)
- · July '10 (1)
- · June '10 (4)
- · November '09 (1)
Recent Posts
- · Mobile, Manufactured, or Site Built Home. What's the difference?
- · How Vacant Is Detroit?
- · Get A Specialist When You Need One.
- · What Discounts Can I Get On A Landlord Insurance Policy?
- · Flood Insurance Expires - Again!
- · Tenant Vs. Landlord
- · Does Anyone Write Vacant Property Insurance?
Recent Comments
- ·
"can my lanlord make me pay for sewer if owner occupied li..."
from , on Tenant Vs. Landlord - ·
"Need coverage on vacant property w/ 2 structures located ..."
from , on Get A Specialist When You Need One. - ·
"My landlord wants me to pay their insurance policy, is th..."
from , on Tenant Vs. Landlord - ·
"This is more of a questiion- can the landlord tell me to ..."
from Ade, on Tenant Vs. Landlord - ·
"I called GLIGA a couple weeks ago in regards to vacant in..."
from Robert Smith, on Does Anyone Write Vacant Property Insurance? - ·
"Thanks Mark, I would love to get the chance to earn your ..."
from Donald Stevens, on Does Anyone Write Vacant Property Insurance? - ·
"I write landlord insurance in Michigan, Ohio, Georgia, Te..."
from Donald Stevens, on Get A Specialist When You Need One. - ·
"Donald, thanks for posting the postive and exciting oppor..."
from Kevin Kaczmarek, on How Vacant Is Detroit? - ·
"Donald, I think you bring up some valid issues. In my pe..."
from Dan Gheesling, on How Vacant Is Detroit? - ·
"thank you. i am going to check my policies right now"
from Don Konipol, on What Discounts Can I Get On A Landlord Insurance Policy?
About BiggerPockets |
Press |
Advertising |
Stats |
Contact Us |
Help
| Upgrade to PRO
Terms of Use |
Privacy Policy
BiggerPockets ® is a registered trademark of BiggerPockets, Inc.
Copyright © 2004-2012 BiggerPockets Inc. All Rights Reserved.
Follow us:
Dan Gheesling Reply
almost 2 years ago
Donald, I think you bring up some valid issues. In my personal experience with owning a land contract partnership note in Detroit has been quite profitable. I have not run into any issues of a vacated property because the homeowners are invested in the property with a sizable down payment. I believe Detroit is profitable with due diligence while also giving back to the community. Interesting post Donald!
Kevin Kaczmarek Reply
almost 2 years ago
Donald, thanks for posting the postive and exciting opportunities in the Detroit area. It's pretty wild to think there is a community that investors can earn 25% returns year over year, but its true here!