We choose the best neighborhoods in Detroit where we know people want to live and our investments are secure.  If you look on the internet at different areas in Detroit, it can be really deceiving.  A beautiful home may be in an undesirable neighborhood.  We choose areas that are well maintained, where we see children playing outside, where we see tidy lawns and shoveled snow.  We also choose neighborhoods in which tenants can afford to live; typically smaller three bedroom bungalows.  These are also more economical to maintain.  This has been our model since 2009 and it works.  

 

Here is an average price per house:

Price     $46,500

House sq ft   900

Basement sq ft  850

No of bedrooms  3

No of bathrooms  1

Lot sq ft  5000

Year built    1950

Annual rent    $9,900

  

Property taxes $1,200

Insurance $500

Property management fees $990

  

Cash Flow   $7,210

Return on investment   15.5%

Section 8 tenant (Yes or No)  Yes

Term of lease  1 yr