Metro Detroit - Choosing Area for 1st Property to BRRRR

17 Replies

Hello. I've been a member of this site for a few years now, but am only now looking to get active here. I would appreciate if anyone might be able to help me narrow down my search area for my first rental property - either single family or a small multi-unit. Looking for advice from those that are familiar with southeast Michigan (Metro Detroit area). Trying to decide what city (or cities) are best to invest in. A few years back I remember reading that Redford, MI was actually a very hot area to invest in and had a great ROI. I'm not sure if that is still the case. Aside from the actual city of Detroit (where some houses are insanely cheap), what are some good areas to look in for a first investment property. Thank you!

i have 10 in Redford.. I think.. I can't remember. Prices aren't cheap anymore. They used to be 30k and now same house is 100-120

make sure u know the difference between "old Redford" and south redford

George - Thank you for the response - this is my first post ever!

That's great news for your equity in Redford I suppose, but not the hot area I was hoping for to find excellent deals.  Any insights on where to look?  N.E. Livonia, Westland, Garden City, Dearborn Heights?  Possibly certain parts of Canton?  I appreciate your feedback!

I have rentals in all those... except canton

its all high man.. it's crazy. It doesn't cashflow anymore. Unless u find an off market deal and even then they stil need 50-60k in rehab to pass all codes

@Jason Collins I echo your struggle. I have 1 property in Harper Woods but  I've been actively looking in South East Michigan (Roseville, St. Clair Shores , Eastpoint , etc.), and the market is crazy hot. Some of the properties that I've offered on would cashflow, but there our multiple offers coming in over asking.  I do have some information for wholesalers, etc. which I will DM to you. A ton of the properties that they have been sending over are not in my area of focus but they may work for you.

@George P. even with all the craziness, what areas would make the most sense near Redford? Also I would love to connect as I see you have a PM and construction company, which is also what I'm actively looking for in 2021. 

Originally posted by @Jason James :

@Jason Collins I echo your struggle. I have 1 property in Harper Woods but  I've been actively looking in South East Michigan (Roseville, St. Clair Shores , Eastpoint , etc.), and the market is crazy hot. Some of the properties that I've offered on would cashflow, but there our multiple offers coming in over asking.  I do have some information for wholesalers, etc. which I will DM to you. A ton of the properties that they have been sending over are not in my area of focus but they may work for you.

@George P. even with all the craziness, what areas would make the most sense near Redford? Also I would love to connect as I see you have a PM and construction company, which is also what I'm actively looking for in 2021. 

 All those mentioned are amazing

also Taylor, allen park, farmington hills.. some of dearborn too

@Jason Collins Hey! I'm actually looking in the same areas, focusing on SFR. I've been searching in Dearborn, Dearborn Heights, Redford, Westland & couple other cities within a few miles of those. The houses I found are within the 90/120k, tough to make a profit when you're leveraging a high mortgage. Some come in at 75k but coc is low and no equity upfront. Currently saving what I can so I'm ready for the right moment.

Originally posted by @Mohamad Hamde :

@Jason Collins Hey! I'm actually looking in the same areas, focusing on SFR. I've been searching in Dearborn, Dearborn Heights, Redford, Westland & couple other cities within a few miles of those. The houses I found are within the 90/120k, tough to make a profit when you're leveraging a high mortgage. Some come in at 75k but coc is low and no equity upfront. Currently saving what I can so I'm ready for the right moment.

 

All true words

Of course nothing is ever impossible, but it seems like it will take much more time and effort to find the right deals right now?  That's just the downside to a strong economy (aside from the recent downturn from the virus)?  Do those of you who are more experienced tend to purchase less properties when the economy is good and prices are up or do you look for alternative ways to find properties?  Any insights on wholesaling in this area?