Are you considering investing in a duplex in Detroit? New investors can either earn two income streams or house hack, living on one side. At the same time, the tenant pays off the mortgage and the expenses for the entire property and may qualify to receive additional tax benefits. However, for the investment to come to full fruition and provide the highest possible returns, you must understand what you should be looking for when investing in a duplex in Detroit.
As you learn the ropes, you should seek out a mentor with the mindset of a real estate investor; someone experienced in the business that knows the market well, preferably a professional investor. Keeping abreast of upcoming zoning changes and industry trends puts you in the driver’s seat, protecting your future income by adjusting your portfolio in real-time for the best possible returns on your investment dollar.
You’ll want to select the best possible location within the section of the market you zeroed in on that you can afford to purchase, rehabilitate if necessary and comfortably handle any downtime with vacancies and handle the maintenance and repairs after running the numbers on your budget. You can upgrade improvements on the land, but you cannot move the land to a better spot within the neighborhood. You’ll want to look for the lowest-priced property with the best possible location; added features like water view or waterfront add tremendous value when investing in a duplex in Detroit.
You should perform an in-person inspection of the property, don’t overlook the importance of noise conveyance levels between units, and while tenants understand shared parking, they seek privacy in outdoor spaces. If you can’t be present, working with a trusted professional as your representative, familiar with the details tenants look for in rentals today, along with the red flags that can save you from purchasing a money pit when investing in a duplex in Detroit.
Property management plays a significant role production of rental income, and you must understand the role you’re taking on and the part it plays in the success or failure of your investments. From the screening process to the day-to-day management style, each step along the way is no more or less critical. However, missteps along the way could eventually cost you. For example, you may lose good tenants, experience higher vacancies, property damage and complaints, and evictions. In addition, your entire portfolio could suffer, especially should you cross any of the local, state, or federal legal guidelines governing landlords. Finally, suppose you can’t afford to hire a property management team to handle everything.
Look for professional guidance from the professional investors at Freedom Acquisition Management LLC when investing in a duplex in Detroit. Allow our full-service team to help you succeed, from locating properties for your goals to keeping you on top of the real estate game so that you can adjust your investment strategy. And don’t forget to ask about our current inventory of the best investments available in Detroit. We work with an in-house team of the most highly qualified pros across the industry, including our top-notch property management team, who can handle as much or as little of the management as you like, for instance, tenant screening. Our local professional team knows what to look for when investing in Detroit real estate and are here to guide you. Contact us to talk about investing in a duplex in Detroit today!