Rental properties can provide you with a solid source of income. However, to make money from them, you have to invest in them early and for the lowest price possible and also make sure they remain rented throughout the year.
Detroit offers a competitive real estate market that continues to attract investors from across the country. These seven reasons can compel you to invest in Detroit rental properties today.
1. Influx of Newcomers to the City
Over the last few years, city leaders have made a concerted effort to improve many neighborhoods in Detroit. This revitalization has drawn scores of newcomers to the city. People continue to come to Detroit to look for and accept factory jobs, start their own businesses or take advantage of the city’s vibrant cultural scene.
Many of these new residents also look to rent housing before they move on to buying houses in Detroit. As a real estate investor, you can provide them with the housing they want to lease when you buy into the city’s rental market. You may find it relatively quick and easy to lease out your available properties and help people who are in need of prompt housing at the same time.
2. Growing Economy
By that same token, you can benefit as a real estate investor from Detroit’s burgeoning economy. It has always been home to major automotive manufacturers. These factories continue to hire and provide Detroit residents with high monthly incomes.
Moreover, Detroit has welcomed scores of new businesses over the last few years. As the economy in the city grows stronger, it has proven that it can support startups and established businesses alike. People who want to enjoy higher earnings and job security increasingly choose Detroit to rent housing, raise families and put down proverbial roots there.
The growing economy likewise can translate into steady rental occupancies for your properties. You may bypass having to put money into properties that will just sit vacant and detract from your rental income.
3. High Demand
To expand on that notion, with more people coming to Detroit, the demand for rental housing continues to soar. Newcomers and established residents alike place a high demand for available properties to lease. Many of them prefer not or lack the financial resources right now to purchase houses of their own.
As an investor in Detroit’s rental properties, you may enjoy fast turnaround times because of how in-demand your housing is right now. You may avoid having to wait weeks or longer for someone to apply to live in your rental housing.
You also avoid having to let your properties sit vacant and go without any kind of revenue from them. You can rely on your rental houses for a steady stream of monthly income.
4. Affordability
Detroit rental properties are likewise some of the most affordable in the country. The average house price in Detroit is around $75,000. In contrast, the average price for a house in the U.S. is around $436,000.
This affordability lets you buy into the local real estate market at lower prices. You avoid having to sink large sums of money that may take you longer to recoup as an investor.
Instead, you may find it easier to make profits from the start because of the low prices of rental housing in Detroit. You can buy them low and then rent them out for competitive prices. You may recoup your purchase price and begin making profits in a matter of months.
5. Appealing Housing
Detroit also has a surplus of visually appealing housing like bungalows. Bungalows are not only quaint and beautiful once they are renovated and brought up to code. They also appeal to many renters who want to live in cozy and charming housing.
Further, the bungalows in Detroit are also more compact in size, allowing you to renovate them quickly and affordably. You can put down new flooring, put on a new roof or paint the walls in a matter of days rather than weeks or months because of the small size of these types of houses. You can quickly repair your rental bungalows and get them back up for lease while avoiding the loss of rental income from them.
6. Opportunity for Creativity
Further, as a real estate investor, you may have certain creative visions for your rental properties that you buy in Detroit. You may want to improve them to look a certain way. You may also want them to blend in well with the rest of the neighborhood and improve in value.
Buying into the rental properties in Detroit can be your ideal chance to bring your creativity to life. You can remodel the houses that you buy to your specifications.
You can also bring out your style and build credibility and experience as a real estate investor. Your creativity might make your rental houses more appealing to people who prefer to rent rather than buy housing right now.
7. Positive Contribution
Finally, when you invest in Detroit rental properties, you can contribute in a positive way to the city and the neighborhoods in which you buy housing. City leaders have worked diligently in the last few years to bring Detroit back to new life. Many of their efforts have focused on the city’s vacant and rundown houses that were once eyesores and brought down property values.
You can reimagine and restore the properties you buy not only to make them more appealing to renters but also improve the value and beauty of the neighborhoods in which they are located. You likewise can do your part as an investor to make a positive contribution to the city while building your investment portfolio and gain experience as an investor.
Are you an out-of-state or out-of-country investor looking to dive into the promising Detroit rental market? Look no further than Upside Investments. With our deep understanding of the local neighborhoods, economic landscape, and high-demand housing, we’re your ideal partner to navigate this vibrant market. Whether it’s finding affordable, appealing properties or offering creative renovation insights, we’re here to ensure your investment journey in Detroit is seamless and successful. Let us help you make a positive impact while securing steady rental income.
