If you’re at all a regular reader of this space, you know that I’m a hawk for cash flow. Regular, boring, methodical cash flow.
Not only that, but I have been boldly proclaiming far and wide now for over a year that southeastern Michigan is THE best investment real estate market in the country for buy-and-hold cash flow investors.
And it continues to get BETTER.
The real estate market here is still in absolute gridlock. The absence of any meaningful activity in the first-time-homebuyer niche, driven by the lack of available financing, has the market here at a standstill.
Since first-time homebuyers can’t buy, the people in those first-time-homebuyer homes can’t move up, and so on and so on up the property price chain. So we remain in a state of gridlock.
And inventory continues to rise: foreclosures are still coming onto the market in large numbers, and non-foreclosures are increasing as well through the natural course of lifestyle changes.
And it’s these non-foreclosures that are presenting the opportunity.
You see, the prices of these non-foreclosed homes are being dragged down as the entire market suffers with the glut of homes on the market. Completely updated homes that are in move-in condition that as recently as 2005 sold for $140,000 are now listed in the $85,000 range and lower and aren’t even getting any showings, much less offers.
And that means that homes in spectacular school districts that historically were untouchable as rental properties, because at their prices they wouldn’t cash flow, are now available. This is almost a problem.
Because some of the houses that I’ve looked at are actually too nice to be rentals. It’s a good problem to have, isn’t it?
And that’s the case with my latest acquisition.
Here are the details:
City: Harper Woods
School District: Grosse Pointe
Style: 3 Bedroom, 1.5 bath bungalow
Basement: Full partially finished
Updated kitchen, refinished exposed hardwood floors
New roof and windows
Central air and 2 car garage
The best part is the price: $60,000
The second best part is the rent: $1100 per month
This is another house that I should have rented before I close on it.
Take a look at the video and you’ll see why. And I found SEVEN more houses just like it.
You can see the rest of the house here: