Updated August 1, 2022.
Growing more means buying more, right? To increase the number of rental properties in your Detroit real estate portfolio, you need to find and buy more investment properties. However, having more properties doesn't always mean more income—unless you have the right approach (and mindset) when adding rentals to your portfolio.
Smart investors who have a large portfolio goal in mind can benefit from 'Major Leagues' real estate strategies as they pursue significant long-term wealth. Having a wide variety of Detroit investment properties that don't make any money for you isn't the point of growing your real estate investment portfolio!
Whether you're a local property owner or an out-of-state investor, the Motor City rental market is a prime area for your success. If you're ready to grow your investment portfolio—and tremendous cash flow—follow these tips from Own It Detroit!
Work With the Best Experts
If you want to add the best properties to your portfolios, you need the best real estate partnerships. When buying a property in Detroit, investors need local experts with plenty of experience in wholesaling properties or fix-and-flip investments.
Successful investors seek out best-in-class service, then maintain those partnerships to benefit from sound advice and elite growth.
The best experts understand the local real estate market, have the inside track to excellent investment properties (before they hit the housing market), and provide a one-stop-shop for brokerage, property renovations, and property management services.
When you connect with the right experts, growing your portfolio becomes easier and more profitable! You'll avoid the pitfalls of low-quality turnkey solutions that are out for a quick buck but leave you with a property that doesn't make any money for you.
Do your research to make sure your investment property service providers are seasoned professionals with plenty of experience in Detroit!
Consider New Builds
New construction can be an excellent way to find affordable investment properties that are ready for renters. When investors don't have to spend time or money on renovations to flip a property or make it rental-ready, you start generating income sooner rather than later!
When choosing Detroit investment properties, investors can find more than old homes in need of renovations. The area has plenty of new construction opportunities that are excellent for investment, including duplexes, condos, and single-family homes. However, not every newly-constructed property is ideal for your portfolio.
When considering a new build, hold it to the same standards you use to evaluate any property to add to your portfolio.
Make sure it is in a desirable location for renters, offers the amenities that renters want, and makes good financial sense.
Don't overspend on new construction in an attempt to save money on renovation costs! Use rental analysis to determine if the property's price and the potential monthly rent amount will deliver a profitable addition to your portfolio.
Watch Your Budget
Finding and buying Detroit rental properties can be fun—until you realize your costs are out of control. If you spend more than you generate in rental property income or fix-and-flip income, you won't build the long-term wealth you want from your real estate portfolio. Profit can only be made after your income and expenses are balanced.
Successful investors must watch their bottom line with every property addition.
While it's possible that some properties won't always make money year-round, it's critical to choose excellent properties.
This will help manage your costs and create an overall successful portfolio that generates significant cash flow.
Investors must track expenses and make smart decisions when managing Detroit investment properties. If budgeting isn't your best skill, choose a local expert that can help you watch your budget and manage your portfolio to profitability.
Be Careful Who You Trust
Trusting your investment properties and budget to just 'any' property management company could be a disaster for your long-term wealth. Partnering with a service provider that offers best-in-class service means investors benefit from:
Wise counsel when choosing your next property: Whether it's a buy-and-hold investment or a fix-and-flip property, you need a partner that points you to the right fit for your portfolio—and steers you away from properties that won't generate the income you need.
Expert budget management: Trusting the right partner to keep an eye on your income and expenses means you'll never be surprised by (or experience) a cash flow issue.
Cost-effective solutions: The larger your portfolio, the more every penny matters to improve your bottom line. With a one-stop-shop real estate partner, you have an expert working on getting you the best prices on new properties, maintenance services, and full-service property management.
Growth requires expertise from every angle! When you choose Detroit, be sure you also choose the best local teams for property management to help ensure your success.
Best-in-Class Service Supports Portfolio Growth
You won't save money by choosing property management services that can't deliver the best-in-class performance your portfolio needs for success! Investors focused on elite growth benefit most from a one-stop-shop solution that provides an expert Detroit real estate brokerage, property renovations, and full-service property management solutions.
That's why Own It Detroit stands out in this market as the best partner for tremendous growth! We do everything we've mentioned here—and more—to help real estate investors experience elite growth. Ready to grow? You can learn more by downloading our free, professional resource: How to Grow Your Portfolio With a Property Management Company!