Despite what some might think, Detroit is a gold mine and a great place to invest in rental properties
Denver, CO (PRWEB) April 15, 2014
Investing in rentals can be somewhat of a challenging undertaking for many especially when first starting out. However this doesn't seem to be the case for Utah investor Nate Heaps. Over the past few years, Nate Heaps has bought and sold more properties than most people do in a lifetime. In just the last 2 years, he's bought and sold just over 500 properties. Many of these are rental properties.
Nate is not new to the world of real estate investing either, having bought and sold over 2500 properties within the last 8 years. Some of them he flips for quick cash, others he rehabs and keeps either for himself or other investors. When asked why he feels it's so important to invest in rentals, his replay is simply, "the monthly cashflow. This is how one builds longterm wealth."
Nate has been primarily focusing on areas in the midwest and recently expanded into the Detroit market. He says, "I agree with Warren Buffett. I too wouldn't touch Detroit 5 years ago, but I love it now because the timing couldn't be better with all the revitalization going on with money being pumped back into the city. Despite what some might think, Detroit is a gold mine and a great place to invest in rental properties. There are only one or two places in the country where one can buy a completely rehabbed property for $30,000 and have it rent for $700 a month. Detroit is one of those places."
Nate says a lot of investors like to invest or buy rental properties close to where they live. While this is not a bad thing, he says that they might be missing out on larger returns. Another common concern for investors is maintenance on a property. Nate says, "Even if I owned property where I live, I would have a property management company take care of it me. It's just not worth the headache doing it myself."
One of the many things that Nate does is buy distressed properties, fix them up, put tenants in them and sell them to investors as a complete turn-key solution. Nate focuses on properties in good neighborhoods that have good rents and a lot of upside potential. "There are certain neighborhoods in these areas that investors want to stay out of altogether. If neighborhoods are bad, it can be hard to get a family to rent there."
Nate runs a company called CashFlowToRetire where investors can look at the different rental properties for sale. Those looking to invest in rental properties can visit the site and also watch a video that explains the Detroit market.