Being A Detroit Landlord Living Out Of State Is Tough!
Many folks would agree that being a landlord is no walk in the park. Being an out of state landlord is even more challenging and requires an extremely high tolerance for risk. In the beginning a lot of investors are blinded by the low barrier of entry for buying rental property in Detroit because of the low property values in comparison to their local market. For example, for people living in areas such as southern California, northern New Jersey or New York City it’s virtually impossible to find properties in the 10k, 20k, 30k price range or anything even remotely close to those values. As of this writing Detroit Michigan is in the top 3 cheapest real estate markets of any major city in the United States! With all of that said being a Detroit landlord living out of state doesn’t sound so bad does it?
Some Major Factors To Consider
Now let’s dive into the ugly side of being a Detroit landlord living out of state. Things like incompetent property managers, unethical contractors and lazy real estate agents who never answer their phones are all things to consider when being an out of state owner. In fact these are the most common problems that Detroit landlords are dealing with in today’s market. We haven’t even touched on dealing with bad tenants or evictions and paying expensive attorney fees or the cost and hassle of getting a property ready for new tenants!
Success Requires Having Good Systems In Place!
Finding the right people on the ground to act as your eyes and ears is far from easy! It’s necessary to have a team in place along with the right systems in order to keep a successful cash flowing rental. Owning rental property in a low income market like Detroit Michigan is a tough game to play for the casual investor, especially for property owners who live out of state.