I am looking to buy a duplex property in the Norwayne area of Westland, Detroit MI for 185k. Each unit has 3 bed 1 bath. One unit is remodeled and empty and the other is not and has tenants paying way under fair market value ($700). I have run the numbers in the area and the property seems to cash flow if I charge at least $1200 per side. That said, I am looking for feedback on average rent prices I can get in that area. Do you think $1300-1400/month per unit (3Bed 1 Bath, 970 sq ft) seems realistic if fully remodeled? That is what the BP average prices it out at ($1300/month). I am looking at zillow and seem to see those rents too, but the previous owner let the remodeled unit go vacant for 9 months. They had a lot of contacts on the property on zillow, so I am assuming the PM was just not following up quickly and loosing applicant, but it is making me nervous about the deal. Anyone have any experience in the area that can speak to rents? How about vacancy and tenants? Would love some local knowledge.
I am looking to buy a duplex property in the Norwayne area of Westland, Detroit MI for 185k. Each unit has 3 bed 1 bath. One unit is remodeled and empty and the other is not and has tenants paying way under fair market value ($700). I have run the numbers in the area and the property seems to cash flow if I charge at least $1200 per side. That said, I am looking for feedback on average rent prices I can get in that area. Do you think $1300-1400/month per unit (3Bed 1 Bath, 970 sq ft) seems realistic if fully remodeled? That is what the BP average prices it out at ($1300/month). I am looking at zillow and seem to see those rents too, but the previous owner let the remodeled unit go vacant for 9 months. They had a lot of contacts on the property on zillow, so I am assuming the PM was just not following up quickly and loosing applicant, but it is making me nervous about the deal. Anyone have any experience in the area that can speak to rents? How about vacancy and tenants? Would love some local knowledge.
For both, $185k. What do own, duplexes? What are yours renting for? How many bed/bath? Why do you say it's a terrible area? A little more context would be helpful
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
1y
Hey Caitlin, locals refer to this area as "Shacktown". I don't personally have experience with it but it's not a great area at all.
I would personally do your numbers at $1,200/mo. I don't think making this a nice remodel is going to help since you're likely not attracting the caliber tenants that's willing to pay more for something nicer... that tenant is looking to live in this area.
Now, if you went the Section 8 route you might be able to push to the $1,300 - $1,400/mo range. I see some listings trying to do that, but they're pretty recently listed so it's unclear at how successful they'll be.
All that said, I'd run your numbers at $1,200/mo and if that works for you and your goals, great. If you get higher than that, even better!
For both, $185k. What do own, duplexes? What are yours renting for? How many bed/bath? Why do you say it's a terrible area? A little more context would be helpful
I have 70 single family in the Westland and surrounding cities. Never bought in norwayne because the tenant pool is C and D. I didn't buy there when I could have gotten them at $5k per side in 2012
thst whole area is rentals. Most is section 8. It's low class but some managers I know make s killing.
houses are in poor condition since they were built quickly in 1946 to house the returning soldiers from the war
Interesting, are they are all doing section 8 housing to make that killing? It seems that rent has grown faster than jobs, and its hard to keep up with the rent at rates like $1400 in that area.
From looking at crime, that neighborhood was lower than all of Westland, so I am surprised to hear its so bad. It seems surrounding areas are worse, but this Norwayne area is pretty quiet after reading more reddit posts etc. I am sure you know the area better, so I would love to hear your thoughts on the difference between there and northern Westland.
New to Real Estate · Northville · Member since 2022 · 1 post · 0 votes
1y
Hey @Caitlin MacMurtrie, me and my wife own a duplex in Norwayne and we are under contact on another one right now. My wife self manages the properties and we would love to answer your questions. If you still have questions, please feel free to DM me and I shall share her contact details with you.