Detroit, is this a good place to invest?

11 Replies

I am very new to investing, I haven't even made my first deal yet. I do think im in the right place to start tho. For a first time investor where would you say i should be financially? How much money should i have to get started in Detroit. I know houses are goin for cheap but would you say its safe to invest there due to the high crime rates?

Originally posted by @Daniel Methven :
I am very new to investing, I haven't even made my first deal yet. I do think im in the right place to start tho. For a first time investor where would you say i should be financially? How much money should i have to get started in Detroit. I know houses are goin for cheap but would you say its safe to invest there due to the high crime rates?

WOW I have not been a member of BP for long. But how many of these threads do I have to see about Detroit.

Unless you have millions or are connected to get downtown or midtown chances are you will be in the ghetto.

Have you been to the neighborhoods in Detroit? I am not talking Ford Field, CoPa, or the casinos. I am talking the real Detroit.

Do you watch the news? Why would you want to deal with the ghetto? Do you own a gun? Would you be willing to go to your investment house at night? Are you wanting section 8?

There are still deals that are not in the warzone that can get good returns on rentals.

How much money do you have to start with?

Not trying to sound negative but to start out in Detroit is not smart.

Ask yourself , why are the houses cheap ? Would you live there ? A cheap house isnt always a good deal . I dont know Detroit , only from what I have read . But you could probably find a cheap house , in a neighborhood nobody wants to live in , that needs more work than what its worth , for very little money. But I wouldnt call it an " investment " could be a " liability "

Yeah this is my first day on the site, i should have looked up other posts on Detroit.Iv heard about down town being built up,and thought maybe that would build up surrounding areas in the future but after reading some of the posts on hear i dont think its a good idea. Its cool this is all part of my research. Iv never been in the game before, so its hard to anticipate the markets next move. The next step i need to take is find a mentor so i can ask dumb ?s like these. =p I have about 8k . Im just wondering if i should save for another year or try and jump in. and thx for all your replys

Originally posted by @Daniel Methven :

Yeah this is my first day on the site, i should have looked up other posts on Detroit.Iv heard about down town being built up,and thought maybe that would build up surrounding areas in the future but after reading some of the posts on hear i dont think its a good idea. Its cool this is all part of my research. Iv never been in the game before, so its hard to anticipate the markets next move. The next step i need to take is find a mentor so i can ask dumb ?s like these. =p I have about 8k . Im just wondering if i should save for another year or try and jump in. and thx for all your replys

8 k is doable maybe for an owner occupied in Warren or Eastpointe. Do you need a place to live or do you already have a house?

Originally posted by @Daniel Methven :

The next step i need to take is find a mentor so i can ask dumb ?s like these.

Hey you don't need a mentor you can ask dumb question right here. LOL

Seriously most of your questions can be answered here. be sure to check out all areas of the site, especially the podcasts which are very popular. And if you really want a mentor check out this post. How to Find a Mentor

@Ned Carey

@Daniel Methven

Who would have thunk circa 2000 we would be talking about buying nice brick Detroit houses for 8K The housing market in many of these towns on the low end is really more like a used car lot.. same price points and same turn over and repo's... Am I wrong?

@Jay Hinrichs you make me laugh.

You can't drive you house but you can sleep in your car.

Thx ned for the link i will def check it out. I am currently trying to attend some investor groups maybe i can meet some people there.

@Ned Carey

or you can get one of those Mobility homes...

In all seriousness my first out of state HML's were in Detroit about 2002 when I ventured out of Oregon.. And at that time I was loaning 40 to 80k for wholesale deals that took 20 to 40k to rehab and investors were buying them for 90 to 120k kind of like the Texas market or Atlanta TODAY.

I did 200 plus of them and got out before 08 I think my last one was 05. as the market was eroding then. I did end up with 2 oreo's that I lost all my money on by the time I got them back they were trashed.. I rehabbed them again only to have them trashed and stripped again. So see it can happen to veteran investors as well as newbies and everyone in between but after this I just let them go to tax's.. And I have not checked on Overages but I doubt there are any.

Its a sad state of affairs there those nice brick homes were so beautifully built by real carpenters and craftsmen in the day. And its why they are still standing today...They are tough as nails vis a vi the bones of the houses.

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