Detroit Investing - What Neighborhoods are You Investing In?

27 Replies

Good day BP!!! I recently went to visit Detoit and found it to be a nice, friendly city with a lot to do. Never been before so I wasn't sure what to expect.  I walked a neighborhood in zip code 48207, there were vacant buildings (I see loft potential). We ventured outside of the city were there were a lot of vacant homes, zip code 48208 (multifamily potential). I recently read that Ford Motor Company has purchased the old train station which will house it's technology campus.  Does anyone currently invest in certain neighborhoods with good cash flow or have been currently researching the real estate market? It's a long distance venture, but I'm up for a successful challenge.  Any opinions are GREATLY appreciated!!!

Enjoy your day ... Cassandra :)

Either of those zip codes could work.  I guess my question is how cheap are you getting in? I know some people don't get this, but I rather spend $55K on a property than $25K.

$25K you have an investor or a owner just trying to get some money and run.  At $55K the property might be in an okay area and the current owner lacks funds to complete the work.

Hey @Cassandra Sifford , I love your looking in the Detroit as a place to invest. With it being a hard market to read I would suggest making sure you have some very reliable and trusted people with boots on the ground. Great people here, food is the best (I'm willing to argue with anyone), and real estate is really doing well as most markets are at this time. I will say cash flow places I work in are more West side than East side but lately I been seeing some better deals on the Eastside so its not an easy market to read with each street being something different. I do like the Cork town area you were referring too regarding Ford Motor Company buying old train station they have some single family homes, small multi family (2-4 units), and I see appreciation in that are with so much activity. More flips have been going on than usual because people are more willing to actually live in Detroit not only invest so homeowners are buying.  Hope I provided some value for you.

@Christian Hutchinson ... I'd want a good quality home and quality tenants to live there so investing starting at $55k seems like a good price point.  I'm interested more in multifamily units, but would love to one day have the funds to rehab a buy and hold loft.  In having a Interior Design background, I see the potential in anything.  I could feel the good energy when we visited and was greeted with warm smiles when we visited the Eastern Market and walked the city.  The food was good and so was the vibe :)

@Jamiel Strickland ... You did provide value as I'm just starting out researching the Detroit market.  I have yet to purchase my 1st property and hoped to do so this year locally.  I'll continue to look at properties in my local market and Detroit to see where the cash will flow best.  

I appreciate the two of you and your input!  If you have connects that you feel are a good source for me, please feel free to PM me.  I hope to come back and visit soon so I can walk various areas to see what the neighborhoods are like.

Many thanks ... Cassandra :)

@Gary Carver ... Thank you for the advise!  I just closed on a local property on Thursday so my funds are tied up for the moment.  I'm in the research stage of Detroit properties, but hope to get there sooner than later with Ford possibly investing back in the city.  I've been interested in the duplexes as there seems to be a lot of inventory.  Do you own property in any of the zip codes you referenced?  If so, how has your vacancy been along with finding good tenants?  Is the CoCR at least 9-10%?

@Christian Hutchinson @Jamiel Strickland ... I'll pose the same questions to you ... Do you happen to have properties in the areas you referenced? How is the vacancy rate and the CoCR?

Originally posted by @Cassandra Sifford :

@Gary Carver ... Thank you for the advise!  I just closed on a local property on Thursday so my funds are tied up for the moment.  I'm in the research stage of Detroit properties, but hope to get there sooner than later with Ford possibly investing back in the city.  I've been interested in the duplexes as there seems to be a lot of inventory.  Do you own property in any of the zip codes you referenced?  If so, how has your vacancy been along with finding good tenants?  Is the CoCR at least 9-10%?

@Christian Hutchinson @Jamiel Strickland ... I'll pose the same questions to you ... Do you happen to have properties in the areas you referenced? How is the vacancy rate and the CoCR?

 I have a property in 48207.  Its empty, I have not touched it for renovation.  I bought it for $600, and I can't justify the $35K cost yet to renovate, its getting closer. Some parts of 48207 have crossed however, people are loading up on 48207 for the "Village" Spillover (Indian and West Village) or the newly branded "North Village".  I'll never call it that it will always be "Kettering" to me.

48208 I do not have property, but the parts that run along 48201 and 48202 are probably expensive and are spoken for.  The stuff heading towards West Grand and Linwood its a little more "Wild West".

It all drive by cash on hand and risk tolerance.

I just returned from a long weekend in Detroit. Love it! My son lives on the river in 48226. I'm not in a rush and i'm in the research stage looking for a SFH or a duplex. I'm thinking with rates going up....prices might be coming down. Looking at Corktown, North Corktown, Midtown, and zip 48227. Any thoughts on prices coming down with rising rates?

My favorite upcoming area is the NewCenter area.  I believe it is the path of progress of the boom of development from midtown.  Im currently working on a condo conversion project in the area. Let me know if you have any questions! 

@Christian Hutchinson   ... Thank you! I appreciate your responses and area knowledge.  I'll have to plug those zip codes in and do further research!  $600 is FABULOUS!!!  I hope that the need comes sooner than later to renovate so the additional income will be there.  What type of property is it ... SF, multifamily, condo?

@Gary Carver ... Thank you for your advise as well!  

@Linda Weiner ... I too loved the city!  Eastern Market and walking the city in the day and night was enjoyable!

@Hakeem Valles ... Thank you for the advise!    How'd you find your project?  With you being out of state do you have connections to the city and relationships already there?  I saw a lot of vacant warehouses / buildings that would be great condo / loft conversions.  I'm a designer so I see the potential in EVERYTHING lol

@Cassandra Sifford What zip codes location you invest depends on your investment goal and time horizon. The Detroit MSA is getting a lot of national and international attention so there has been a large influx of investors in this market. However, it’s not as simple as one size fits all! I’d be happy to answer any specific questions you have.
@Hakeem Valles . . Congrats in yiur success on and off the field. I agree that the New center area is a good area. I currently own 2 homes there and have had 6 within the last 8 years. Lid I can assist you in finding additional properties on Detroit let me know
@Cassandra Sifford I would speak to @Marisa R.  

She been very successful in Atlanta and now moved on two Detroit



Originally posted by @Cassandra Sifford:

Good day BP!!! I recently went to visit Detoit and found it to be a nice, friendly city with a lot to do. Never been before so I wasn't sure what to expect.  I walked a neighborhood in zip code 48207, there were vacant buildings (I see loft potential). We ventured outside of the city were there were a lot of vacant homes, zip code 48208 (multifamily potential). I recently read that Ford Motor Company has purchased the old train station which will house it's technology campus.  Does anyone currently invest in certain neighborhoods with good cash flow or have been currently researching the real estate market? It's a long distance venture, but I'm up for a successful challenge.  Any opinions are GREATLY appreciated!!!

Enjoy your day ... Cassandra :)

@Alex Franks ... Thank you for sharing and I'll reach out to Marisa!  I was interested in investing in ATL as well.  I have a friend who lives down there that I need to visit to see what's out there.  

35215 Birmingham, AL (Pinson AL.)

44128 Cleveland, OH. (Warrensville Heights OH.)

30157 Atlanta, GA. (Dallas, GA.)

30344 Atlanta, GA. (East Point GA.)

Atl over priced I would for sure spend the time in Det.....


Originally posted by @Cassandra Sifford :

@Alex Franks ... Thank you for sharing and I'll reach out to Marisa!  I was interested in investing in ATL as well.  I have a friend who lives down there that I need to visit to see what's out there.  

Originally posted by @Christian Hutchinson :
Originally posted by @Cassandra Sifford:

@Gary Carver ... Thank you for the advise!  I just closed on a local property on Thursday so my funds are tied up for the moment.  I'm in the research stage of Detroit properties, but hope to get there sooner than later with Ford possibly investing back in the city.  I've been interested in the duplexes as there seems to be a lot of inventory.  Do you own property in any of the zip codes you referenced?  If so, how has your vacancy been along with finding good tenants?  Is the CoCR at least 9-10%?

@Christian Hutchinson @Jamiel Strickland ... I'll pose the same questions to you ... Do you happen to have properties in the areas you referenced? How is the vacancy rate and the CoCR?

 I have a property in 48207.  Its empty, I have not touched it for renovation.  I bought it for $600, and I can't justify the $35K cost yet to renovate, its getting closer. Some parts of 48207 have crossed however, people are loading up on 48207 for the "Village" Spillover (Indian and West Village) or the newly branded "North Village".  I'll never call it that it will always be "Kettering" to me.

48208 I do not have property, but the parts that run along 48201 and 48202 are probably expensive and are spoken for.  The stuff heading towards West Grand and Linwood its a little more "Wild West".

It all drive by cash on hand and risk tolerance.

Kettering is now "North Village"?!   That's fantastic... it means the Villages are something worth being "adjacent to" :)  I have two SF houses in 48207, both of which are being rehabbed.  I hear what you're saying about the cost to make them habitable but I don't think that will be considered a gamble when you're looking backwards a few years from now.  The rents in the Villages are rising every quarter it seems.  And keep in mind, Dan Gilbert is looking to develop the old Uniroyal Tire site on the waterfront next to the Belle Isle bridge.  In fact, he pitched it to Amazon when Detroit made its bid.  These are exciting times in the 48207.

Cassandra and Christian..this is an interesting read for a southerner like me. Detroit sounds like a new frontier, and a re-building opportunity. Am I reading that right? I am interested in learning more. I'm not so keen on a 3-month fix and flip as I am something I could buy today for $40,000..rent and/or rezone if necessary, and re-sell for 90-100k,  a year or two from now. Is that the kind of potential you are seeing?

Originally posted by @Ramesh Nyberg :

Cassandra and Christian..this is an interesting read for a southerner like me. Detroit sounds like a new frontier, and a re-building opportunity. Am I reading that right? I am interested in learning more. I'm not so keen on a 3-month fix and flip as I am something I could buy today for $40,000..rent and/or rezone if necessary, and re-sell for 90-100k,  a year or two from now. Is that the kind of potential you are seeing?

 If you can hold the the property, and have it cash-flow it can work. We have a triplex in the City we might unload or refi out the cash.  The key is it cashflows $700/mo, but we can sell it for 90K profit right now.

Or we can refi it and take out $75K in cash, service the debt, increase rents maybe another $400/mo in the next year. Property needs another $30-$40K in work to max the rents.

We got the property did some minor upgrades and got it livable. But that was 30 Months ago, pretty soon, the rents will start falling and so will tenant quality as nicer units hit our neighborhood. We tripled the value very quickly...so its cashout and run or engage in big rehab work.

@Cassandra Sifford I actually need to change my location, I’m currently in Detroit. And we found the project off market that an investor had but already had his hands tied up in a multitude of different projects.  I’ll be sure to keep you updated as this project comes to fruition!

@Ramesh Nyberg ... I have yet to invest in the Detroit, but found it to be a nice city.  The people were pleasant and the area where I visited seemed vibrant.  I've been doing research and companies seem to be interested in coming back to the city so I figure why not invest in something that is rebuilding and bringing people back.  In the start of things, I'd be more interested in a buy and hold, maybe add some additional add on's as the value of the property increases then potentially sell it for a higher profit.