My question is, how easy is it to actually flip a house in Michigan? Do you just buy the house, fix it up, and put it back on the market? Is there taxes to pay out of the sale? I already own a rental property in Detroit but I am starting to become interested in the flipping part of the business. Can anyone give me some advise?
In a nutshell, yes you basically buy a home, fix and flip.
Easy?
There is a multitude of factors to consider.
Location, is it growing, improving, or getting worst?
Comps, to truly know the area cannot be over emphasized.
DOM (Days on Market), long? is it because of repairs, or something else?
Legalities - I am not a lawyer, but there are some basics you should know
Connections - Mortgage,hml ,contractors,lawyer,cpa,buyers, realtors,etc.
Economy- the area may be excellent for on type of investing, not another.
The list goes on and on.
Nothing worthwhile is easy, but I will say this, nothing else will bring greater rewards then real estate investing so it’s worth it.
Good Luck and be sure to check out all the free articles and audio here on this site, real good stuff.
hey househunter in detroit. send me a personal email and include name and number. i can give you a call and we can talk . detroit is my area too, my biggest problem is building my buyers list. i have properties.
Thank you two so much for your advice. Yesturday was my first day on the site and I must say that I am well pleased. The advise was awesome, so much to consider and think about I am so excited about the whole thing. And I agree realestate is the thing to get into I am loving every minute of it ;D 8)
I can tell you a few things about Detroit and Michigan that I have learned.
This state SUCKS!
Major Job loss due to GM, Ford, and allot of suppliers going out of business. That means that markets in Dearborn, East side of Detroit and Troy are going to see allot of houses for sale.
Right now is a bad time to flip for FMV unless you can post the house for a deep discount and still make a decent profit.
Home buying explodes around May, June, and July. Slows down totally during the winter, as you know how it gets around here.
Plus I wouldn’t recommend buying rentals in Detroit unless you know the neighborhood is good because what looks like a good street during the winter, will be a dice shooters\blunt smokers paradise during the summer months.
Detroit is SUPER strong section 8 market as we have a never ending supply of Baby momma’s looking for houses. Plus
The section 8 money comes from Uncle Sam directly to you.
I am also looking for people connections in the Detroit area, as I am running across deals alot, and we can all always help each other out.
BTW becareful as Detroit has alot of investers that are SHADY!
remember: money makes a man strange.
don’t say stuff like that. for your information, it is like that all over major metropolitan cities. your comment just shows your ignorance.
Regardless if you like to hear it or not it is true. I know my city\state very well. But as This is a specal market becasue of social\economic issues, that warrents more understanding of local habbits. In the end I’ve only spoken facts. (Would you tell a new invester to buy over on Linwood and 16th?)
I find it intresting you would say someting like that to me when you post stuff like this:
"if the rents are so low i would guess they are dumps which is why the seller is dumping to you. look for buyers who like warzones as i have a mind to believe that that is where the property is located. "
Would this be a form of hypocrisy???
never any hypocrisy from me. linwood and 16th by the way would happen to be an area that i know investors who like it. truthfully, there is always the right investor for every area. however, making the derrogatory comments that you made, you offended me. i felt stereotyped because i know that the people you are referring to as “dice rolling/blunt smoking-- baby mama’s” happen to look like me. this site is about helping other investors overcome challenges in the business through advice and networking. here is a thought, new york city is loaded with “those kind of people” and it is a fact that many of the millionaires in NYC started in real estate (the reason most of us got into this in the first place) and i wonder did they shy away from jamaica queens, flatbush, bronx, harlem for the same reasons you are telling investors to shy away from detroit? i doubt it. there is the right investor for every area.
oh yeah,
i grew up in detroit-- eastside as a matter of fact (jefferson and connors). i lived 8 years in north carolina and i recently moved home. i know my city/state as well. even more so, i know my neighborhoods.
Well I don’t mean to offend but if you re read my post and see my profile I’m all about Detroit and I work with people for investing IN Detroit. Best way to fix this city is from the inside out.
At the same time I am TELLING THE TRUTH! Theses are social factors that do exist with in the city and one that knows how to manipulate them can make top Dollar in Detroit, but you have to be AWARE of them.
As for taking offence I said nothing about YOU at all.
And as for “dice rolling/blunt smoking-- baby mama’s”
Let me ask you one question; am I lying?
I’ve rolled a dice before, I’ve smoked more than my share of blunts back in the day, and me and my baby momma are doing fine.
But I’m not offended because the truth should never be offending it should be enlightening.
“happen to look like me”
What does that have to do with anything I said??? They Happen to look like me also, and everyone on the face of this planet.
BTW - I lived in Detroit all 25 of my years never left for any other state besides a vacation. Linwood & 16th is what you called in another post that I made “a war zone” Which is not a factual statement. And I was actually offended when you called it that because my high school is in that area and so is allot of family and friends.
Isn’t the superbowl going to held in Detroit? I heard it’s really gonna go up there.
Yes ssir! Now would be a good time to get in.
They are doing allot with the Downtown land scope, and waterfront. Also the city has stopped selling its vacant lots to developers and they are renewing some of the older areas.
I’d have to say give us about 10 years and we will be the new Chicago.
Okay maybe 11 years…
Hey Minya, did you make an offer on that REO??? How’d that turn out???
MIKE I WAS OVERBID. SOMEONE OFFERED 64K FOR IT. BANK TOOK IT.
OK, so how are these folks (regardless of who they are) paying rents? Detroit sounds like a super hot market, but how’s anyone making the payments?
Where are the hot areas?