Places to invest in/around Detroit
What is a good area to invest in or around Detroit that would yield good cash on cash returns( long term, midterm, short term rentals). Im looking to buy within the next 3-6 months and its making more sense to buy a single family home due to high cap x with multi-family properties. Kinda wet behind the ears so any info will help.
I am probably misunderstanding something. Isn't high cap x a good thing?
Hey Kingsley, I'm the BP expert on Detroit. I have 12-doors there and lived in the Metro area from 2017-2022. I built my portfolio from 2019-2021 and then moved back to California.
There are a lot of great spots in Detroit but you do need to be careful. You can't just focus on zip codes or neighborhoods. They can change quickly and, as you'll hear, Detroit can be very "block by block".
That said, there is a TON of opportunity if you understand the landscape and what you're doing.
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You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:
https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse
Our analysis is a template you can follow for any city, but doubt you'll find this much info for any other market in the US.
So, why would you invest remotely anywhere else?
How can we assist you further?
Quote from @Travis Biziorek:
Hey Kingsley, I'm the BP expert on Detroit. I have 12-doors there and lived in the Metro area from 2017-2022. I built my portfolio from 2019-2021 and then moved back to California.
There are a lot of great spots in Detroit but you do need to be careful. You can't just focus on zip codes or neighborhoods. They can change quickly and, as you'll hear, Detroit can be very "block by block".
That said, there is a TON of opportunity if you understand the landscape and what you're doing.
Hi Travis, I would like to connect with you and see if maybe you can offer me some advice. I own 3 SFH in Detroit currently, 2 vacant and 1 occupied. Trying to determine next steps and best moves....thanks. Steve
@Kingsley Michel Do you want less cash flow, better investment or higher cash flow, likelihood of some issues? I would start with how much you are willing to invest. I've sold properties to investors who hold portfolios and for lack of better word the properties are all trash and then I've dealt with some who have a well-oiled machine. If you're new you may have to take the low hanging fruit and deal with some problems and then move up. This deserves a further conversation. The best to you in your journey.
I'd invest in New Center/ North End area- both upcoming areas, close to the city (8 mins) and a LOT of investment happening in the area. I would still take a look in person since Detroit is block by block. I live in the North End and I am very close to 3 major hospitals downtown, Wayne State university and CCS. There are so many students and traveling professionals. I rented a room in my home this past summer to great tenant who was doing an internship in Detroit $1100/ month! I would say these areas are also great for midterm, great for short, decent for long term- very close to all that downtown & midtown Detroit has to offer!
I hear many people speak of Detroit suburbs or the outskirts but not much about the inner city close to downtown. As someone who has lived here for the last 2 years, I have been in impressed by the amount of investment going in and around the downtown areas, much more opportunities to come in Detroit!
@Rachelle Antoine - interesting take! I am recently exploring Detroit. Are you currently in the RE space there?
@Rachelle Antoine - interesting take! I am recently exploring Detroit. Are you currently in the RE space there?
I bought a primary house here( new build townhome) and currently turning my basement into studio so I can rent that out short term. Planning to buy another primary in a year or so!DM me if you wanna chat further!
Quote from @Kingsley Michel:The issue is Detroit is a very block by block city so you’re going to want to narrow down your searches down literally to specific blocks within specific subdivisions and not just looking at zip code by zip code. so, while you can get answers of specific subdivisions that people may recommend, it’s best to make sure the specific block you are about to purchase the property on isn’t a rough one.
What is a good area to invest in or around Detroit that would yield good cash on cash returns( long term, midterm, short term rentals). Im looking to buy within the next 3-6 months and its making more sense to buy a single family home due to high cap x with multi-family properties. Kinda wet behind the ears so any info will help.
that being said, happy to chat about Detroit real estate anytime !
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Quote from @Kingsley Michel:
What is a good area to invest in or around Detroit that would yield good cash on cash returns( long term, midterm, short term rentals). Im looking to buy within the next 3-6 months and its making more sense to buy a single family home due to high cap x with multi-family properties. Kinda wet behind the ears so any info will help.
Welcome to the Dirty D.