Investing in Metro Detroit HUD homes
Here is how to figure whether you are going to make money when buying Metro Detroit HUD homes as an investment.
First how much will your mortgage be. I myself am looking at a Metro Detroit HUD homethat I want to buy at $40,000. My worst case scenario for the mortgage would be $293.51 a month.
Right now the Michigan property taxes are $964 for the winter and $999 for the summer for the total tax bill of $1963 a year. Now that is homesteaded taxes. If it is non homesteaded (which means it is an investment property) the taxes will be roughly about 30% more. So I am guessing the taxes will be about $2600 a year.
So if the mortgage is 293.51 a month
the property taxes are 216.66 a month
and homeowners insurance is 60.00 a month
$570.17 a month
If I can rent this 1000 square foot home for $800 a month then I would clear about $230 a month. Positive Cash flow is what you want when you buy a Metro Detroit investment property.
Now that wouldn’t be a bad deal. I’ll let you know whether my bid gets accepted.
Russ Ravary Your Oakland and Wayne County Realtor
You can search Metro Detroit HUD homes on McBreo.com or I can email you the latestMetro Detroit HUD listings weekly
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Homes for sale in West Bloomfield MIchigan