Detroit has one of the most lucrative real estate investment markets in the country right now. People who buy buildings, either with the intent of selling or leasing them out, stand to make solid returns on the money they invest there.
In particular, bungalows are a hot commodity in the real estate market in Detroit. Learn why purchasing bungalows in Detroit can be your opportunity to increase not only your portfolio but also your wealth as a real estate investor.
Small Size
The average size of a bungalow in Detroit is noticeably smaller than the average house size in the U.S. In fact, the average American home now spans approximately 2500 square feet. In contrast, the average bungalow size in Detroit is between 900 to 1100 square feet.
Still, this smaller size can work to your advantage in several ways. For example, it allows you to spend less money on bringing it back up to ideal appearances after a tenant moves out of it. You pay less to put in new floors, repaint walls and install a new roof because of its compact size.
Second, its small size allows you to carry out renovation projects faster. You spend less time getting it ready to lease again and avoid losing out on monthly rental income that you may rely on as a real estate investor.
High Demand
Further, bungalows are plentiful in the Detroit real estate market. They are one of the main styles of houses and typically feature sturdy brick exteriors.
The prevalence of bungalows in Detroit satisfies the high demand for them. People who want to buy or lease homes in this city often prefer bungalows over other styles of housing, such as townhomes or apartments.
When you buy bungalows with the intent of leasing them out, you may find ready tenants for them quickly. You may avoid having to wait for months or longer for anyone to apply to live in the ones you have for lease.
If you buy bungalows with the intent of selling them, you nay fix them up and sell them in short fashion. Real estate trends in Detroit indicate that bungalows remain on the housing market for short periods of time before being purchased.
Basements
Many of the bungalows in Detroit have basements in them. These basements add to the average size of 900 to 1100 square feet that are already available for tenants or buyers to use.
Even more, basements appeal to people because these spaces are ideal for family recreational rooms, spare bedrooms or kids’ play areas. When you buy bungalows that have basements in them, you may find it easier to lease them out to people or attract buyers for them.
Additionally, you can highlight the usefulness of basements in your bungalows as storm shelters. Detroit is located in the Midwest, which experiences stormy weather during the summertime.
People who buy or lease bungalows with basements in them have spaces to retreat to if thunderstorms or tornadoes strike the area. You can play up this highlight when you buy bungalows to sell or lease.
Yards
Further, many of the bungalows in Detroit feature generous yard spaces. The size of these yards can be impressive given the compact size of the houses themselves. Still, you can play up the fact that your bungalows have yards that offer buyers or tenants spacious areas to enjoy.
A front or backyard can serve as the perfect place for tenants or home buyers to host parties, for example. They can also use the outdoor area for barbecuing or picnicking with their families and friends.
Even more, the size of the yards can attract people who want their children to have spaces in which to play outdoors. Children can go outdoors and play catch, play on swing sets or otherwise enjoy time in the outdoors. They do not have to be cooped up inside when the weather is nice, which can appeal to parents who prefer this amenity for their children.
Starter Homes
The bungalows in Detroit likewise have value as ideal starter homes for first-time homebuyers. As an investor, you can highlight the value of buying a bungalow instead of a larger and far pricier home elsewhere. People who buy a bungalow as a first home have the opportunity to gain experience as homeowners while also saving money to buy a bigger house later, if they prefer.
The small size of a bungalow can also serve first-time buyers well because the small size of the house can save them money on repairs and upkeep. They do not have to spend a lot of money making repairs to the walls or floors, for example, because there is less space to fix. They pay less for fewer materials and have more money to keep in their bank accounts.
Ease of Updating
Finally, just like the people who buy bungalows from you, you likewise may find it easier and more cost effective to update yours and keep them up-to-code. Code compliance presumably will remain a foremost priority as a real estate investor in Detroit. You need your bungalows to pass inspections and spare you the financial burden of paying code violations.
Because they are smaller in size, you may find it less stressful to update fixtures like the floors, walls and roofs. You also spend less money on these projects and have more money to keep in your bank account as a real estate investor. You avoid losing out on the profits you may count on as income for you and your family.
Detroit has a plethora of visually appealing and sturdy bungalows for sale right now. As a real estate investor, you might be tempted to pass them over in favor of larger and pricier homes.
However, the bungalows in Detroit can actually offer you the ideal opportunity when you want to invest in the local real estate market. You can take advantage of their cost effectiveness, high demand and prime amenities like yard space and basements.
Whether you’re expanding your portfolio or stepping into the world of real estate investment, count on Upside Investments to help you navigate the nuances of Detroit’s market, ensuring you capitalize on bungalows that promise both short-term gains and long-term appreciation. Contact us today, and let us help you unlock the full potential of Detroit’s bungalow properties, maximizing your investment success with minimal hassle.
