The 3 biggest pitfalls when buying Metro Detroit investment properties are:
A. Under estimating repair costs or not knowing what damages to look for in a home can end up having the investor put too much into a home than it can seller for. A leaking basement wall behind paneling. (Hire an inspector if you are inexperienced) I see thousands of homes a year, but home inspectors always pick up thing I miss.
b. Not knowing the comparables are, what homes are selling for. Banks are very tough on appraisals. You aren't going to be able to sell a home for more than market price if the buyer needs a mortgage. Be realistic and know the neighborhood sales prices. Don't be overly optimistic and over estimate the possible sales price after you fix up the home.
d. Not know what the city is going to require in terms of repair. Cities like Dearborn, Westland, Taylor, Inkster have certificate of occupancy requirement. If the city requires you to replace the driveway because it is all cracked up. It could be $10,000. That could take all your profit.
Thinking about 3 biggest pitfalls when buying Metro Detroit investment properties can help you when picking the right investment properties. Think carefully.
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