Are you ready to expand your real estate horizons? Why not reach out to new markets to further diversify your investment portfolio? The real estate market no longer knows any boundaries by advances in marketing through digital photography, drones, and internet technology. Investment property investors can now search through online sites for listings, with the ability to scroll through hundreds of listings in the time it would have taken to travel to the airport. Using technology to their advantage instead of spending valuable time traveling or covering the expenses of a visit to a new location for investments. You can view high-quality images and watch 360-degree virtual tours, with the ability to see a property “as if” you were there. You can also take advantage of the internet to do a careful investigation of the property and any issues that could interfere with the transaction or devalue the property. As with everything in life there is a risk, so educating yourself about your investments is the best way to safeguard yourself from making expensive errors. These are four things you should know about buying an investment property in Detroit sight unseen.
Dealing with Renters
While you can screen tenants long distance, you should still meet potential tenants for your Detroit investment property face to face. This step in the process is invaluable and requires a professional to assist you with the screening process. Naturally, it is always best to have eyes on the scene to keep up on maintenance and ensure prompt completion of repairs. Otherwise, you risk losing the good tenants you have found over their exasperation with your long-distance management.
Because you’ll be seeking a loan on an income property and not your primary residence, the interest rates and any adjustments on those rates for your Detroit investment property will be more expensive. To the lender, you’re at a higher risk for repayment because you have another residence available. For this reason, you’ll be paying higher interest rates and more expensive discount points on your mortgage. The programs and loans for investment properties and the requirements to qualify for the loans vary from primary residences.
Different Than Your Primary Home
If you’re not looking forward to middle-of-the-night long-distance calls from tenants, paying for emergency flights to handle a leaking roof or a busted pipe, you may want to have a team of trusted professionals to call upon in Detroit. If you would rather not spend your weekends or rental property income traveling to Detroit to monitor your property, you may wish to research property managers. An experienced property manager will care for your Detroit investment property in the same way you would care for your own home.
With the inside scoop on the Detroit market, we can quickly locate the best Detroit investment property for your portfolio. Even if a property is brand new, it is highly advisable to have a trusted professional located in Detroit represent your interests during the transaction. By partnering with us, you ensure that the real estate you see online is the actual property you’re buying! We can also let you know if there is a displeasing odor drifting by from a dump upwind or some other unseen problem with the property itself. Send us a message to learn more about how we can help you.