How to be profitable when buying Metro Detroit HUD homes

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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Positive thoughts for the day

My Quote of the day is:

At times the road of life can seem dark, cold, and lonely. One day it seems, nothing in the world can stop you from accomplishing your dreams. Then, unexpectedly a situation arises out of nowhere and the doubt, fear, and anxiety creep in. Perseverance Quotes give us the insight and strength to do what’s necessary to accomplish your most treasured and sought after dreams and goals. They provide you that little extra boost you need to keep on keeping on even when the world says it can’t be done. — Robert Alan

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