I hope this note finds you well. I am new to real estate and have recently graduated and began working. I am looking to purchase a property, hopefully a small multiplex (using FHA), in Metro Detroit (Royal Oak, Ferndale, Birmingham, Southfield). I hear the market is volatile and its future is uncertain. Can you please help me better understand the market? Is this a good time to buy or perhaps sit and wait for the market to be more stable? Any and all suggestions, advice, or help is highly appreciated. Thank you for your time.
I find Michigan to be a very interesting place to invest due to the extreme highs and lows in home prices in such close proximity. My advice would be to find a real estate agent that focuses on rental properties or even better one that owns rentals themselves. This agent would likely know the best places to invest in the area and where the sweet spots are where properties are cheap but up in up and coming areas.
I have found in my research that many areas are already overpriced and would be harder to make a profit from renters, but they are out there. Royal Oak is an area that I think is too expensive, but there are other places like Lansing and Grand Rapids where cash flow seems better.
Last piece of advice would be to check the laws for each city concerning rental laws. I'm no expert in this area but I have heard certain cities are very renter friendly and this can cause challenges for landlords if disputes arise.
@Reza Roghani Esfahani I don’t know your level of risk and what types of investments your looking for long term or flip expound on your goals and we can explore more
Hey Reza, market will be volatile but nothing like before. What people need to understand this is pandemic crisis which yes effects all levels of economy but this is not a Financial crisis. You might see high unemployment for a few months but all of that will eventually even out. In 2007 and 2008 everything was going downhill. Now you will see some sectors go down then up, like entertainment and travel, but essential business are in business and busier then ever.
I find Michigan to be a very interesting place to invest due to the extreme highs and lows in home prices in such close proximity. My advice would be to find a real estate agent that focuses on rental properties or even better one that owns rentals themselves. This agent would likely know the best places to invest in the area and where the sweet spots are where properties are cheap but up in up and coming areas.
I have found in my research that many areas are already overpriced and would be harder to make a profit from renters, but they are out there. Royal Oak is an area that I think is too expensive, but there are other places like Lansing and Grand Rapids where cash flow seems better.
Last piece of advice would be to check the laws for each city concerning rental laws. I'm no expert in this area but I have heard certain cities are very renter friendly and this can cause challenges for landlords if disputes arise.
Hey Reza, market will be volatile but nothing like before. What people need to understand this is pandemic crisis which yes effects all levels of economy but this is not a Financial crisis. You might see high unemployment for a few months but all of that will eventually even out. In 2007 and 2008 everything was going downhill. Now you will see some sectors go down then up, like entertainment and travel, but essential business are in business and busier then ever.