Hi BP communities !
I watched 50% rule video and I read blog about rental property number that posted by @Ali Bonne. I tried to applied what I learn to purchase my first turn key rental properties in Detroit, Mi. There I quesstion for Detroit, MI investor out there too
Here the information:
SANTA ROSA DR
Leased: $1225 / month
Property Taxes: $2115 annually
Utilities: Tenant pays
Deed type: Warranty
Title: Free & clear
Property management: 10% of Rent collected.
12 months leased
Security deposit – 1 month rent
1. Began November 1, 2013
2. Began February 1, 2014
My question is what is average cost for Annual home insurance premium in Detroit, Mi Wayne County? I need Annual home insurance Premium so that I can put data in 50% rule. Based on the address above, do you think is it good area to invest on rental property? Please advise this newbie should I buy it or skip it this deal? It is an auction deal.
Thank you in advance !
Hi and welcome. Based on the information you entered it sounds like the university district, but you didnt provide any adresses. Not sure about the home insurance but you should be able to get some quotes from an insurance company. Auctions are ok if thats the way you want to go. I think the easiest way to go with less hassle would be bank owned and hud properties. There are some great deals in metro detroit so dont get attached to trying to make a deal work if the numbers dont work.
You need to have someone like Shea Woods (see Shea Show on youtube) do a video walkthrough of the property and surrounding area if you haven't seen it. The pictures could be old and may not show how it looks. Also will want to see what the rest of the street and nearby streets look like. Would you want to rent a perfect house when the two on each side of you and across the street are abandoned and have fire damage? The auction place may be looking to unload a polished turd on a sucker. Just be careful.
@Scott Stevens Thank you for the video !
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