Detroit took some tough jabs with auto industry scale-downs.? Some of that pain is subsiding, as communities are rejuvenated with new investment.? The dismal local economy has created ample opportunity for investors to take advantage of Detroit wholesale properties.
The power of passive income
Passive income is a recurring revenue stream that does not require great or regular effort.? Rental property is perhaps the best example of such a revenue stream, with the added benefit of appreciation.? Right now, Detroit area properties are priced so low – relative to current rental costs – that positive cash flow opportunities abound.
Investors can profit significantly from Detroit investment properties because it is such a great market model to generate cash flow.? Here are some examples of real Detroit real estate income property scenarios:
18719 Westphalia, Detroit MI 48205
3 Bed 1 Bath 1500 Sq Feet
ARV 80k+
Comps
19168 Strasburg 1293 Sq feet.? Sold on 10/12/07 for 100,000.? 0.56 miles from Westphalia
13859 Linnhurst 1324 Sq feet.? Sold on 10/31/07 for 89,900.? 0.6 miles from Westphalia
Your Wholesale Price only $25,000.???? Estimated Repairs $20,000
In this example, with a fixed rate mortgage financing the purchase with nothing down, you would breakeven at about $700 rent.? That covers the mortgage payment, management fee and the taxes.? This calculation was based upon including the $20,000 estimated repairs, and folding it into the financing.
Here is another, real world example:
Positive CASH FLOW!!!
Fully remodeled and Rented at $725/mo. complete with Management
13591 Faust St? 48223?????? 3BR 1BA? 1300 SF
Wholesale Price $49,900???
This property breaks even with around $650 in rental income.
Just as there are employees and self-employed people, there will always be owners and there will always be renters.? Thus, it is an effective working model of passive revenue achieved through rental property.
Growing your long-term wealth
In addition to the strengths of passive income, cash flow properties in Detroit real estate contribute to your long-term wealth and prosperity.? While your renters are paying your mortgage payments, you are enjoying “free equity” building up in your home.? Thus, not only are you earning passive income from Detroit investment properties, but you are also simultaneously increasing your asset value.
In addition, as the graph of time clearly indicates, real estate will always appreciate.? In the long term, Detroit real estate value will increase, especially considering that the supply of land is infinite.? Subsequently, you are not only generating passive income and building free equity, but you can profit from future appreciation – all which pad your wealth.
How to enter into successful cash flow Detroit real estate
The main component to successfully profit from Detroit investment properties is knowledge.? Most of the decline in many Detroit neighborhoods has hit the bottom already, and the inevitable upward bounce is already beginning.? By having the knowledge it takes to choose a profitable cash flow Detroit investment property, you can enjoy the long-term benefits of growing your wealth.
In fact, it is possible to use Detroit houses to build equity and wealth in as little as five years.
