When carefully executed, when you buy and hold property, it can be a great way to build your portfolio and build wealth as the value of your holdings increases over time and create a monthly cash flow. Passive income earned through your real estate investments allows you the financial freedom to do what you want with your time. The wealth you have built will provide you with financial security, which means you’ll remain in the driver’s seat living out your golden years. In addition, as you pay down any mortgages over time, your income will increase and bring you healthy returns on the investment for long term passive income in your retirement. In addition, investment properties provide you with a hedge against inflation because rental rates tend to keep pace with increases in the cost of living. However, if you jump in without knowing what you’re doing, you are more likely to face financial disaster, so read on as we explore how to buy and hold property in Detroit.
Don’t let emotions guide the day when it’s time to purchase and hold property in Detroit. Instead, you should perform due diligence to ensure the investment is sound and that the risk is low, given the potential for the return on the investment ROI. Then, the team you’ve built through your networking efforts should be ready to move swiftly and inspect the property, providing you with an accurate assessment to formulate your offer and get the first bid in on great deals.
You should know your budget and work within your financial limits to buy and hold property in Detroit. There is more than just the cost of the property to consider. Holding costs can add up quickly as the monthly bills keep rolling in while waiting for the investment to be rental-ready. You also need emergency funds for unexpected repairs; otherwise, you could end up in a financial pinch, with uncompleted repairs and a property you can’t rent.
Teamwork makes the dream work when you buy and hold property in Detroit. But, when it’s time to complete the upgrades, unless you have the experience to handle every type of repair yourself, you’ll need a team of reliable professionals on call to bring your investment to its highest potential. To help you determine what fixes are and aren’t worth making, working with a team of professional wholesalers means you won’t have to worry about making costly errors with frivolous upgrades that will bring no return.
Once you’ve successfully managed to buy and hold real estate in Detroit, you’ll need to follow local, state and federal laws governing the landlord-tenant relationship and begin fulfilling your role as landlord. If you aren’t looking forward to wearing all of the hats of a landlord, you should consider hiring a property management team.
You’ll benefit from years of local experience and intimate knowledge of the Detroit real estate market, along with a team of the best pros in the industry by working with the highly regarded professionals. Contact us here to invest in Detroit real estate and buy and hold property now!