Are you looking for a build to rent opportunity in Detroit? Learn more about what to expect and how to quickly profit from your investment in our latest post!
Build to rent opportunities are hotter than ever because investors all over the country are seeing how profitable the can be.
Why Choose A Build To Rent Opportunity
A build to rent opportunity has many benefits for investors in Detroit. You can typically acquire a piece of land pretty inexpensively, then work with qualified builders to develop the land, creating a rental property. Tenants are drawn to new construction. The idea of something clean and never been lived in is very appealing to your potential renters. With new construction, you will likely be able to charge a higher than average rent as compared to older houses that are being offered for rent in your neighborhood. With a relatively low investment, you can quickly create a profitable investment property that can benefit you and your family for years to come.
What To Expect
When you work with We Buy Houses in Detroit to facilitate your build to rent process, you can count on working with the most talented and efficient builders in the area. They have built houses for many other investors and understand the end goal. They are able to offer high-quality workmanship and extremely cost-efficient prices because we do so much work with them. Because we understand the process and know how to get things done, you will be able to kick back and relax while you wait for your first rent check to roll in.
A build to rent opportunity in Detroit will offer the investor a huge amount of potential. When the right location is found and put to its highest and best use, the property will rent itself. It won’t be hard to find high-quality tenants who you can count on to fulfill their obligation each month and keep the house free from damage. Typically, when someone moves into a new home, they will want to keep it as nice as possible, whether they own it or not. This will work to your benefit, keeping the house in better condition for a longer amount of time as opposed to an older property being offered for rent in Detroit.
What You Need To Do
When choosing a build to rent opportunity, we can present you with all the information you need, but it is up to you to analyze it for yourself. Is the location is a place where you foresee people wanting to rent? What is the demand in the area like? While we can provide much of this information for you, as an investor you will want to take some of the due diligence into your own hands.
While you will know what you are paying to close on the property and facilitate the construction, there are other costs that will inevitably pop up as a property owner and investor. You’ll need to factor in taxes, insurance, utility costs, maintenance, landscaping, and any other costs a homeowner in your neighborhood will face. There are a number of calculations landlords use to determine if a property will be worth it. You can determine a property’s rate of return by determining the capitalization rate and the net operating income. Running these numbers before breaking ground will help to ensure the investment you are making is the right one for you.
Market The Property For Rent
Even before the construction is completed, you’ll want to get the word out about your future rental property. You can add renderings of the completed property in your marketing so people know what to expect. Taking out a couple of ads or putting up a few signs to get the word out will only benefit you in the long run. Once the property is completed, create a full-scale marketing plan to get the house rented out fast. With the right marketing, you may even be able to have tenants secured before the house is even finished!
Manage A Rental
When managing a rental, you have one of two choices. You can choose to handle everything yourself or you can choose to work with a local Detroit property manager. Doing things on your own will require a bit more of your time but it will save you about 10% of your rental income each month. If your tenants are consistently asking you for things or if you are managing properties, a property manager might well be worth the money.
We would love to help you find your next build to rent opportunity in Detroit! Contant us any time to learn about available opportunities or to get answers to all of your purchasing questions!