Looking to purchase a rental property in Michigan, where would the best area be that would bring the greatest cash flow?
The cities with highest cash flow will be places like Detroit or Flint.
The map below shows rent to price ratios for census tracts in Detroit.
The darker areas signify higher yields.
As you can see, the areas surrounding the urban core will have the greatest returns.
However, I would caution you on solely basing your investment criteria on high yields.
These location will be great on paper but will almost certainly create problems in practice and cause cash flow to suffer due to the high risk of investing in such places.
@Art Perkitny thank you! Looking in metro Detroit area specifically Dearborn the homes are going for $40,000-80,000 I’m just wondering if I will be able to get a tenant there.
@Beatrice Chis Dearborn is going to be C area on average.
Vacancy is running at roughly 10% and decreasing over the past few years.
There are plenty if great pockets in Michigan that you can invest in that will net you great returns. I would ask what is your budget or goals, so that the area can align with your goals.
Detroit, Eastpointe, ferndale and other areas are great with decent rents but again you have to work out how much you have to put down for down-payment and possible reserves.
@Beatrice Chis Warren,Oak Park,Detroit,Redford