Detroit is now the hottest market for landlords
The monthly mortgage payments in Detroit are far less than average monthly rents for the same properties
The monthly mortgage payments in Detroit are far less than average monthly rents for the same properties
Motor City is hardly one of the more desirable places to live in the United States, but data provided by RealtyTrac shows that Detroit offers U.S. real estate buyers the biggest return on their investment. Thanks to ultra-low housing prices, the monthly mortgage payments in Detroit are far less than average monthly rents for the same properties. As you can see below, you can still charge a reasonable rent in depressed areas, so the cheaper the house, the bigger the profit.
American counties with the biggest real estate returns:
Median home price: $44,900
Avg. monthly rent: $1,124
30% annual return
Median home price: $42,000
Avg. monthly rent: $862
25% annual return
Median home price: $50,750
Avg. monthly rent: $1,187
28% annual return
Median home price: $50,880:
Avg. monthly rent: $1,008
24% annual return
Source: RealtyTrac, based on median sales prices for Jan. 2014 and average fair market rents.
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