Using Detroit land to diversify your real estate portfolio is an excellent strategy. Learn some great tips and tricks in our latest post!
The purchase of Detroit land is an often underrated real estate investment choice. It isn’t as exciting as other forms of real estate and people don’t always see the potential. However, the right piece of land can end up producing great profits. Below we offer some tips on what to look for as well as some ideas of how to use your land to generate profits.
Signs Of Profitable Land
A property in a great spot will generate great profits. If the land is in an up and coming area, you will see the demand, and prices for land go up. Having land in a rural area isn’t as likely to appreciate as land in areas that are actively being developed.
No Building Restrictions
While buying land may seem very simple, there are things you will need to look into before buying or selling land in Detroit. You don’t want to buy a lot with the intent to develop only to find out you aren’t able to do what you wanted. Make sure there aren’t any building or zoning restrictions that will impede any profits you will see from the home.
Generating Income Using Land in Detroit
Many people think that land just has to sit there, but this isn’t always the case. There are a number of ways you can use your land to generate income. Of course, the zoning needs to fit what you want to do, but if you get a little creative, you can think of a number of great ways to use your land.
Buy and Develop
One strategy to generate income using land in Detroit is to buy land and develop it at a cost-effective price. As long as you are able to rent the property out right away or resell it, you will have the potential to generate amazing profits from the piece of land.
Another strategy is to purchase a large parcel of land, subdividing it and reselling to a number of buyers as individual lots. The process can take some work, but once you know the ropes, it can be a great way to make money using land in Detroit.
Rent It Out
Depending on the property, there are a number of different audiences who may want to rent it from you. If you own a residential lot, you can consider leasing it to a neighbor to expand their yard, store their boat, or build their kids clubhouse. Many homeowners will jump at the chance to spread out, even if it isn’t permanent. If you own a lot in a commercial area, you can lease it to a local business for parking. Or maybe you lease it out for events such as concerts or farmer’s markets. If you have agricultural land, farmers in your area may be looking for some extra space.
Why It Works
There is a smaller pool of land buyers, which means you will have less competition when looking for the right property. Sure, there are people who do this professionally, but the numbers are much lower.
Land can usually be acquired at a much lower cost than other forms of real estate. This makes it more accessible and easier to add to your portfolio.
Sellers will find it much easier to part with a piece f land as opposed to a single family home. There is less attachment, giving you the opportunity to find a great deal.
If you want to diversify your real estate portfolio, using land in Detroit is an excellent option. We are happy to help you find the right lot or answer any questions you have.