Financial Advisor · Ajax, ON · Member since 2019 · 16 posts · 7 votes
I will love to help anyone that is doing any Detroit deals, so I can get a better understanding I am not afraid to get my hands dirty. And with the New Era Detroit community group that is working to help better the city for the people that live in Detroit. I am East of Toronto.
Financial Advisor · Ajax, ON · Member since 2019 · 16 posts · 7 votes
7y
I want to buy something maybe in a year for say 5k, 10k fix and rent it out but I am just not sure of the best place to look at. Is my idea for 5k impossible.
Harper Woods, MI · Member since 2017 · 384 posts · 311 votes
7y
@Dale Holder Welcome and good look at getting you feet wet. I'm an local investor that invest in Detroit and the surrounding areas. I would save more to get better properties. 5k you can acquire a property but I dont think 15k is enough to get a home rent ready. A property around that amount might be in a bad neighborhood where you might look to acquire a few homes on the block and do the same.
Real Estate Agent · Los Angeles, CA · Member since 2019 · 58 posts · 11 votes
7y
@Keyonte Summers
Hello, what area in Detroit would you stay away from? This would be helpful when searching for potential properties. I am not from the area so I have no knowledge of the community in Detroit.
Harper Woods, MI · Member since 2017 · 384 posts · 311 votes
7y
@Nancy Mascorro that question is really hard to answer since its really block by block with Detroit. You can base it by area code. Do you live in Michigan? if so I would drive the areas you plan on investing in. I prefer to stay east just because thats where I live and I self-manage so make things better for me. What are you searching for when it comes to investment properties?
Keyonte is 100% correct. I already made this mistake. I'm finding the entry point in gentrifying neighborhoods is in the $40k to $50k range. Below that, you're in for a lot of misery having to redo the roof, electrical, plumbing, and HVAC. You'll probably have to take the drywall/plaster down to the studs too because of mold from water intrusion. And don't forget repairs to the brickwork, front and back porches, windows/doors, and gutters/downspouts. Finally, the longer your rehab, the longer you have to pay for security covers on your windows and doors... which can be expensive if you have a lot of them.
Financial Advisor · Ajax, ON · Member since 2019 · 16 posts · 7 votes
7y
And yes @jason I did watch podcast 331, fantastic I will be just fine not having a mortgage to pay and build my Mortgage and insurance business on the side.
Financial Advisor · Ajax, ON · Member since 2019 · 16 posts · 7 votes
7y
I am a minimalist with a wife and two kids but I can't put my way of living on my family, so having a cash flow will free me up to live my lifestyle in my traveling. I will look into the areas you all have listed.
Hey @Keyonte, so $20,000 I can get something moving ready?
That would be really pushing it, you might be able to buy a major fixer upper for 1-5k and a 15k rehab might get it rent ready but I wouldnt bet on it. If you want a safe investment and can use financing I would budget 20-35k for downpayment/closing cost that can get you in a nice area in detroit that appreciate well without risking to much of your investment. You dont want to buy any home and have the rest of the block boarded up because that would attract the wrong type of tenants.