« Six Types Of Homes – And Their Advantages | Home | Acquiring Off Plan Property »
Michigan Real Estate Investing During a Recession
By Vic Hurlstorm | January 7, 2009
News of the fact that the nation as a whole is in the midst of a recession has become a hot topic of late. Everyone seemed to avoid using the term until the last few weeks of 2008 when the government released a report that confirmed what experts were predicting. Now it’s all everyone hears about.
Michiagn is unique in that, unlike the rest of the nation, it has been mired in a recession-like state starting back in 2004.
Imagine being in a recession that has been ongoing for 4 years!
Of course they say that with every cloud comes a silver lining and the same is true for those involved in Michigan Real Estate Investing.
Truth be told, the values in states like Ohio, Michigan, and Indianna never really saw the exponential increase in values as much of the nation did.C.These factors have kept Michigan housing prices far more affordable than what you find nationwide as a whole.
In addition, the big 3 auto makers troubles started after the 9/11 attacks and never really made a full recovery. As plants started to close in 2004 and restructuring began in earnest, many local residents began to lose their jobs.Factors such as these caused many people to move out of the state instigating a drop in demand in the local real estate market.
It’s hard to think about how the recent decline in housing prices nationwide for the past year is being taken so hard and then realize the fact that Michigan has been in this same situation for almost half a decade now!
However, while prices have declined to artificially low levels, rents have not, which means it’s a VERY good time to be a “buy and hold” Michigan real estate investor.
You see, each year there are a certain number of people that are looking to move up from renting an apartment to renting a house(many just want a yard for their dog), but add to that an influx of people who have lost their homes to foreclosure as well as people that want to “sit the market out” and wait for prices to bottom out, and it’s easy to connect the dots and see why demand is so high for rental properties.
A 3-bedroom brick house that rented for $950 two years ago would have run about $105,000. If an investor financed the majority of that property then the payments would end up around $850 or so with taxes and insurance factored in.
A similar house, needing little work, could be found for around $50,000 today!This means that it's possible to have $400 to $500 per month in positive casfhlow on every house!
There is no better time to get involved in Michigan Real Estate Investing.Whether you live in the heart of the Motor City or are three time-zones away, this opportunity is available to you. There are plenty of well run property management companies that can keep an eye on your growing real estate empire for you so you can invest from afar.
New technology such as automatic draft payments and e-check payments solutions mean that you can avoid ever worrying about whether a tenant has put your check in the mail on time or not.
Considering the foul treatment the stock market has doled out to pretty much everyone of late, it might be a good idea to do some research on Michigan Real Estate Investing.You can start by seeking out a hot list of wholesale Michigan foreclsoure properties that don't need a lot of rehab to get them ready to rent out. The sooner you do the sooner you can start building your own cashflow real estate empire.
Topics: Uncategorized | Comments Off
Comments are closed.