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How to Rehab a Detroit Property – 19785 Biltmore
We’ve just completed another Detroit rehab project and as usual, we had a great time. This 3 bed 1 bath bungalow on Detroit’s Northwest side was completely updated inside. This turnkey property was transformed from an ugly duckling to a beautiful swan.
Why Urban Real Estate Makes Perfect Investment Sense
Why urban real estate makes perfect investment sense. The biggest advantage of urban real estate versus other niche areas is the ability to liquidate quickly. If the property is in a good area, is well kept and has excellent cash flow, investors will always be attracted to it. Besides having a lump sum up front, there’s nothing investors love more than an asset with heavy cash flow. In my urban properties, I typically cash flow $400- $500 a month NET after expenses. All this from an initial investment of under $30,000. With that kind of cash flow it is easy for me to find an able and willing buyer to sell to if I need some immediate funds. In a soft market, your survival depends on your ability to lower risk and liquidate on the fly.
Urban properties allow investors to increase potential cash flow by buying in bulk. It is not uncommon in some areas of the country to purchase 5-10 cash flow properties for $100,000 total. Imaging buying 10 properties at one time and they are all ready to start earning a return on your investment. No rehab needed, just find a manager and start collecting. Urban properties allow you to reduce your risk by acquiring more assets with less money. If one property sits vacant, the others are still earning cash flow and keeping the business profitable.
Remember: If you have any questions related to Detroit Real estate, email me at info@arraymg.com and I will answer some of them on future blog post.
“Spend eighty percent of your time focusing on the opportunities of tomorrow rather than the problems of yesterday.” -Brian Tracy
How GM Leadership Can Stimulate Detroit Job & Housing Markets
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Recent leadership changes at GM could ultimately boost Detroit’s local economy and stimulate the job and housing markets.
GM chairman Edward E. Whitacre, the former AT&T CEO will take over as CEO of GM, replacing Fritz Henderson who resigned after 10 months at the helm. The company is now in a position to make some power moves and regain its status as being an industry leader.
If GM increases productivity, jobs should follow. UAW healthcare and wage concessions could give GM the incentives needed to keep jobs in Detroit. This will help retain and create jobs at auto suppliers, local restaurants, and other small businesses in the area.
It can also help to revitalize the Detroit Real Estate market. A fresh crop of newly employed people will look for affordable housing in and around their job location. Real estate investors will be an important factor in this equation. Because of the lower wage scale, most workers will only be able to afford homes in moderate income neighborhoods. Also, if gas prices stay at the current levels, many people will prefer to live closer to the workplace. With this in mind investors can target designated investment areas.
In order for GM to turnaround their fortune, 2 things need to happen.
1. Get a Younger and Stronger Management Team
GM has traditionally been a large, slow company that used its size to maintain market share. Younger leadership is needed to bring in new ideas and continue to create products that appeal to a younger demographic. The best companies are the ones that can identify market and technological shifts and quickly make changes.
2. Use New Cost Structures to Make Big Bucks
GM recently exited bankruptcy which is greatly reduced its debt and healthcare cost. There have also been UAW wage concessions which will further allow GM to be more competitive. If sales can increase steadily, GM is poised to be a cash cow in the near future.