Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
Its a very active market.. however extreme caution must be used by those that are not familiar with the market. more so than most other markets in the US>
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
11y
The Detroit market is mostly in decline. At the height of it's population in the 60's, there were something like 1.6 million residents. Now there are less than 700,000 and shrinking every day. All that extra housing just sits around vacant.
There are some good neighborhoods, but you really have to have someone you trust, boots-on-the-ground if you hope to make any money.
Lots of seemingly amazing deals, but if you don't know what you are doing, you will lose your shirt. Tread lightly in Detroit. (Sorry D-Town!)
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Alvin Neal
Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
11y
Yes people are buying everyday here and people are avoiding Detroit as well. It depends on your tolerance. There are some good neighborhoods for rentals.
There's also areas in the metro area that are attractive for investors right outside Detroit.
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Richard Ball
Real Estate Agent · Port Huron, MI · Member since 2012 · 295 posts · 82 votes
11y
People buy, sell and rent in Detroit just like any other city in the world. The difference between Detroit and other cities is that other cities have large areas of good neighborhoods mixed with a few bad areas, Detroit has a large amount of bad areas mixed with a few good neighborhoods. Figure out where the good neighborhoods are, where they are expanding too and how to play and you can do well. I would caution that most people that invest from out of state or do not have someone on the ground will lose the game of Detroit.
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Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
Richard : Great points you made . Just don't see why people would want to invest in C & D neighborhoods from out of state .
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James DeRoest
Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
11y
Originally posted by @Gil Cortes:

Hi Everyone,
Just Curious is anyone picking up property in Detroit? if so why? if not why?
Why would you bother with Detroit when the Florida market is pretty much destroyed - and people actually want to be in Florida (even if it is just the crazies).
Or you could buy property in the cold north where no one wants to live in a Democrat hell hole.
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Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
Originally posted by @James DeRoest:

Originally posted by @Gil Cortes:
Hi Everyone,
Just Curious is anyone picking up property in Detroit? if so why? if not why?
Why would you bother with Detroit when the Florida market is pretty much destroyed - and people actually want to be in Florida (even if it is just the crazies).
Or you could buy property in the cold north where no one wants to live in a Democrat hell hole.
Not sure I understand the comment " When the Florida Market is pretty much destroyed ?" Can you comment on that further please ?
Perhaps I am one of the Crazies LOL but I see the state of Fla ,Certain parts of Tex and Arizona as being " Gods Waiting Room " To me a majority of the Fla State economy is based on Retirement , Hospitalty , Tourism and Service industrys . Typically Low paying Jobs to begin with . I just don't see much Major Mfg being done there . Most of the Snowbirds generally are in the upper middle income are and have the means to do such . The Permanent retireres really don't have the means to improve there lots in life .
All the major cities Jax , Orlando , Tampa , Miami have there A , B, C, and worse neighborhoods Drugs , Single Parents ,Gangs the lists go on as to the reasons why .
For the investors I think there is still quite amount of oppurtunity there .but from what I have seen and heard it is hard knowing there are 10 other people trying to chase down the same deal .
For the Non Investor Young couple starting out in life sometimes it is tough to make ends meet .living there .
Old Farts like myself staring 70 in the eyeballs Don't really want to live in Cold North year round nor a Democratic Hell Hole . I tell this to my kids and Grandkids all the time . The America I grew up in is Not the America I know today .very sad .
I guess you can tell my conservative voting tendencies LOL When first got married we each worked 2-3 jobs typically $2-$3 per hour just to save up for a down payment on our first house . How many youths today do you know doing the same thing . Society now dictates we live in the Give Me Give Me and being Politically Correct at all times world .
So much for Social Evolution . I have no problem helping people with their NEEDs .I do have a problem helping them with their WANTs . Anybody on here get there NEW OBAMA PHONES lately ? You can tell we are in Deep Trouble when the "People " elected this WORTHLESS POS for a second term !! again very sad .
Well RUSH is over I think I will take a Break , Relax and watch FOX News . LOL !!
1 Reply
James DeRoest
Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
11y
Originally posted by @Bob Baldwin:

Not sure I understand the comment " When the Florida Market is pretty much destroyed ?" Can you comment on that further please ?
Sure. Florida is in a 3 way race with Arizona and Nevada (LV more specifically) to be the state with the most foreclosures - and I do believe - we're winning!! Go FLORIDA!
We invest in Florida. Having a great time with it.
Bit I can't figure is why people are STILL not paying their mortgages!
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Darren Budahn
Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes
11y
Who invited Rush Limbaugh on to BP
6 Reply
Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
Sorry If my opinions bothered you !! Well NO NOT REALLY . Rush already has Big Pockets lol
1 Reply
Robert Curls
Investor · Clearwater, FL · Member since 2013 · 132 posts · 58 votes
11y
I don't see much major manufacturing being done anywhere in the states, let alone FL. Its funny when a hyunai is made in AL, but a Ford is made in Canada.
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Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
Robert : Not All Fords . in Kentucky here Ford has 2 large plants here one for Pickup trucks and one for SUV 's . Seems like they are always in a state of expansion
0 Reply
Adrian Smude
Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
11y
I do not invest outside of my area, but here's an interesting set of imagines from Detroit from peak to current
2 Reply
Che Chiu Wong
Jersey City, NJ · Member since 2015 · 280 posts · 98 votes
11y
Originally posted by @Gil Cortes:

Hi Everyone,
Just Curious is anyone picking up property in Detroit? if so why? if not why?
Allergic to bullets - that's why.
2 Reply
Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
Adrian : That link certainly makes a statement . what a shame Dem / Libtards let it get to that point . Chitcago , LA , NY , All across the country The C &D neighborhoods are going to hell . So much for Hope and Change !!
1 Reply
Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
Originally posted by @Che Chiu Wong:

Originally posted by @Gil Cortes:
Hi Everyone,
Just Curious is anyone picking up property in Detroit? if so why? if not why?
Allergic to bullets - that's why.
It seems to me that the media plays a big part in the continuence of such . Example : With ford having 2 large plants in Louisville Ky. We are told that roughly 45% of All applicants from the west side of town can NOT even fill out a basic Job Application .
When you listen to the nightly news generally 5 out of 6 nights someone is getting Wacked down there . YET when they interview the Mother it is usually the same story . Yeah my Boy is a Good boy he just got out of jail but he was turning his life around . In the rare occasion when they catch the Perp He is either on Parole or he has a Rap sheet a mile long . But his Momma will claim "HE was a GOOD Boy I Don't know what happened to him "
1 Reply
Tora Miller
San Francisco, CA · Member since 2015 · 3 posts · 4 votes
11y
Originally posted by @Alvin Neal:

Yes people are buying everyday here and people are avoiding Detroit as well. It depends on your tolerance. There are some good neighborhoods for rentals.
There's also areas in the metro area that are attractive for investors right outside Detroit.
Thanks for uour reply and advice
1 Reply
Richard Dunlop
Investor · Detroit, MI · Member since 2014 · 755 posts · 462 votes
11y
Originally posted by @Che Chiu Wong:

Originally posted by @Gil Cortes:
Hi Everyone,
Just Curious is anyone picking up property in Detroit? if so why? if not why?
Allergic to bullets - that's why.
I lived in a beach community in California in a house that Zillow says is worth more than $800,000.00 and heard gunshots on a regular basis about 50-60 shots total.
I've lived in Detroit for twice as long and not yet heard any at all. Not one.
3 Reply
Mardochee Pierre
Real Estate Investor · New York City, NY · Member since 2015 · 73 posts · 41 votes
11y
I'm not from Detroit but here are some news articles and numbers on why you might want to invest in Detroit.
1. http://www.nbcnews.com/news/china/chinese-investor...
2. http://www.mlive.com/news/detroit/index.ssf/2015/0...
3. http://michiganradio.org/post/kresge-foundation-pl...
4.http://www.detroitmi.gov/News/ArticleID/195/State-...
These are just a few articles to enlighten you. First thing I would ask myself is what is my timeline for my investment. Is it 5 years , is it 10 years etc...? Second thing is what kind of investment strategy am I using. Are you flipping homes, Are you buying and holding or you using it as a vacation property. What clientele are you going for? Are you going for Hipster millennials (which they are flocking to the city by the way) or working class families? To be honest I can see Detroit back on the map within 10-15 years if you ask me. Just like NYC in the 70' and 80's Detroit is going through a transformation. It's only a matter of time.

4 Reply
Mardochee Pierre
Real Estate Investor · New York City, NY · Member since 2015 · 73 posts · 41 votes
11y
Here is a recent article on flipping homes in Detroit by the way. Please do your homework if you decide to go down this route. Good luck either way.
Nationwide, the average gross profit for flips in the first quarter was $72,450, the highest since the firm began tracking flips in 2011.
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Detroit is among the top five areas for returns on home flipping, a sign that there are not enough move-in ready or newly constructed homes for buyers, according to a report from RealtyTrac.

Nationwide, the average gross profit for flips in the first quarter was $72,450, the highest since the firm began tracking flips in 2011.

"The strong returns for home flippers in the first quarter demonstrates that there is still a need in this recovering real estate market for move-in ready homes rehabbed to more modern tastes, particularly given the dearth of new homes being built," said Daren Blomquist, vice president at RealtyTrac. "The challenge for flippers in 2015 will be finding inventory to flip."

DETROIT FREE PRESS

Metro Detroit housing prices regaining ground, up 4%

Detroit is high on the list, he said, because it has a combination of distressed homes and buyers.

"It's good for the area; it's good for investors," said Howard Mitchell, a Detroit broker. "The market is improving. Values are starting to come back up again in certain neighborhoods. It's good for an investor when you can by property and turn around and sell it for a profit."

The report, released earlier this month, showed that 17,309 single-family homes, or about 4%, were flipped -- sold as for the second time withing a year -- during the first quarter, down from 4.7% the quarter before; and 6.7% the first quarter in 2014.

DETROIT FREE PRESS

Local housing market blooms for buyers and sellers

The practice of flipping has been popularized by a variety of reality TV shows.

RealyTrac compiles data from a variety of sources, including records from tax assessors, mortgage deeds, foreclosures and auctions.

The average flip was up from $65,290 in the previous quarter, and up from $61,684 in the first quarter of 2014.

More than half of the homes flipped sold for between $100,000 and $300,000.

In a ranking by percent return, an average of gross profit of the home price, metro Detroit was fifth with 58.3%, it followed Baltimore, with 94.1%; Deltona-Daytona Beach-Ormond Beach, Fla., with 74.7%; Ocala, Fla., with 73.9% and Lakeland, Fla., with 62.5%.

Other markets in the top 20 included Tampa, Pittsburgh, Memphis, Chicago, Seattle, New York, Washington, and Boston.

"Savvy investors are still finding opportunities in our robust real estate environment," Mike Pappas, CEO and president of the Keyes Company, said in a statement. "The distressed inventory is waning, but still being liquidated by the lenders, which bodes well for those individuals positioned to remodel and create turnkey properties for new homeowners."

1 Reply
Mardochee Pierre
Real Estate Investor · New York City, NY · Member since 2015 · 73 posts · 41 votes
11y
Don't listen to people like Bob Baldwin...he offers no facts and is looking to rain on your parade . Do your homework and look to people who have the right information.
2 Reply
Account Closed
Residential Real Estate Agent · Phoenix, AZ · Member since 2013 · 17 posts · 12 votes
11y
it would be just a hunch but, I have to guess most of the people that are trash talking Detroit have never been there. Why do I say that? Because I was one of them... Now I own 10 SFH's and plan to bring that number to 30 very soon.
1 Reply
Bob Baldwin
Investor · Shelbyville, KY · Member since 2011 · 93 posts · 20 votes
11y
A Matter of Time ? LOL !! How about MENTALITY and the FOLKS that caused its decline . ?
0 Reply
Richard C.
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
11y
Can someone offer any information suggesting that Detroit's schools are turning around? Because without that, a few hipster millenials and a new hockey arena aren't going to matter.
I could see Detroit turning around, if they demolish roughly a third of the housing stock and turn around the schools. The first is underway. Is the second?
1 Reply
Mardochee Pierre
Real Estate Investor · New York City, NY · Member since 2015 · 73 posts · 41 votes
11y
You can't even begin to understand the complexity of the problem. Number two, you're not in Detroit nor do you understand the problem. Three, you offer no solution. Four, there seems to be alot of people in the town that are investing and making some type of money. So if you have nothing to add , why add anything at all...Bob Baldwin. Right.
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Detroit??? Has anyone been purchasing there? Why, Why not?

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Nationwide, the average gross profit for flips in the first quarter was $72,450, the highest since the firm began tracking flips in 2011.