Investing in Detroit while living in NY.Good idea?

3 Replies

I'm currently living in NY looking to start investing.Getting my NY license first then looking to transfer to Detroit but I don't want to move.Could I work from NY? And if so should I?

No. Absolutely not.

There are very few people that make Detroit investing work from out of state. Those that do visit often and have partnered with other local investors. I've purchased four rental properties in Detroit in the last three months. The learning curve is steep. I can't imagine not being here locally. 

Along the way I've met folks that are attempting to invest from out of state. Property managers screw them, contractor screw them, their houses are constantly being broken into, they are getting ripped off during the initial purchase, the tenants are terrible, etc. etc. The list goes on and on.

If you aren't here, or you don't have someone you can 100% trust that's already here, I'd stay away.

@Mike Muniz -  Are you asking if you could represent clients in Detroit while living in New York?   Or are you looking to just invest in Detroit?

If your answering yes to the first question, then I really hope your kidding.

If your answering yes to the second question, then yes, you absolutely can.  But I'd be planning on booking a ton of flights to Detroit with the intention of spending a lot of time there to learn the market, or to find a PM whom you can trust.  Check out David Greens Long Distance Investing book.

I believe it is possible to successfully invest in Detroit from a distance but I'm still working to prove out the concept.  I live in California but I was in Detroit when I closed on my first property in June and my first tenants are due to take the keys in a few days.  The reason I have some confidence in this not being a complete disaster is because I frequently visit for both work and family (actually got married there this year and will visit again soon) and would meet potential teammates every trip and spend hours driving the neighborhoods.  Without that much time driving around and having face to face meetings, I wouldn't attempt investing there, it's unlike any city I've visited before.