Southeast Michigan Real Estate Investments: How to Pick Profitable Rental Property
Posted in Southeast Michigan Real Estate by Michigan Real Estate Expert on April 18th, 2011 Low home prices combined with low interest rates makes this a great time to purchase southeast Michigan real estate investment property. One of the most popular real estate investments is rental property. Investing in rental property can be profitable, if you pick properties that meet the following criteria:
- Require minimal maintenance. Southeast Michigan real estate with newer appliances, smaller yards and that have been well-maintained, are typically easier and less expensive to continue to maintain.
- Attract long-term, well-paying renters. Your goal is to get renters who will take good care of your southeast Michigan real estate, stay a long time and pay on time. While lower-priced properties near colleges may be easy to rent, they typically attract students who tend to be loud, messy and short term renters. On the other hand, rental properties that are in the highest price range may attract renters who are in jobs that require them to move frequently or who will quickly purchase homes of their own.
- Located in highly-populated, low-crime areas. Steer away from rural areas where there are fewer potential renters. Look for homes in neighborhoods that have low crime rates and good school districts. Neighborhoods near public transportation, grocery stores and shopping malls attract renters.
- Zoned for renting. Always check to be sure the property you intend to lease is approved to be rented by local zoning or home owners’ associations.
- Priced properly. Your purchase price must be low enough to allow you to set the rent within a range the local market will bear and that will earn a profit for you. Be sure to take into consideration every expense of owning, maintaining and renting this property, when considering if you can turn a profit and have a positive cash flow from the start.
Interested in buying a rental property? I can help. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.
Lee Morof
Associate Broker/Attorney
Certified Distressed Property Expert
RE/MAX Showcase Homes
Birmingham, Michigan
Call: 248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com
