Residential Real Estate Agent · Rochester, MI · Member since 2012 · 152 posts · 52 votes
I keep hearing about how much Detroit is the worst etc on the podcast. I have a feeling it's mainly being referred to as the scams that go on there and the people who take advantage of new investors.
So rather than saying Detroit is the worst you can't make an honest buck there, I'd like to hear some peoples opinions on HOW you can invest in the Detroit area and do well.
I'm moving to the area (about 45 minutes North) and I refuse to believe there aren't great investment opportunities there where you can safely make an honest living in flips, buy and hold etc.
Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
11y
I would suggest that anyone looking to invest in Detroit make a trip out to see the city for themselves. There is no one size fits all strategy for Detroit or any other market.
There are areas prime for redelopment but that depends on your pricepoint.
If you have the option to buy a $1,000 pair of shoes or house. Please buy the shoes. At least you can take them back if you change your mind.
Engineer · Suwanee, GA · Member since 2013 · 127 posts · 47 votes
11y
Originally posted by @Account Closed:
How about this... if you don't own property in Detroit and / or have ever been to Detroit for real estate due diligence... shut your mouth! Keep your ignorant opinions to yourselves. As for the investors buying Detroit like myself... we will continue to enjoy 30+% returns and the rest of you can be happy with your 1-3% returns.
+1, there really is no other explanation to that comment.
@matt cramer If you want to invest in Detroit, two questions.. who is your target market? Who is on your team to help you find deals and rehab to that target market?
Answers those two questions honestly, and have the checkbook behind the rehab projects and you can do terrific.
Investor · Kalamazoo, MI · Member since 2014 · 60 posts · 25 votes
11y
Personally I only invest in Detroit (suburbs). It's made me wealthy. I don't go near downtown but I know many that do, both commercial and sf and are successful. What's important is to be in the actual downtown, not one block farther.
Also, there's a place called gross pointe which borders the east side of Detroit; cross 1 street and you go from burned out husks and grey concrete to green boulevards and $2m houses.
In summary, Investing from afar is a bad idea in my opinion.
It's as safe as anywhere else in the country if you know where not to get out of your car at night. If you're in the wrong place at the wrong time you might as well be in the São Paulo slums, Caracas, or pretty much anywhere in Africa.
But if you want safety, move to Asia. The USA is way more dangerous than pretty much all of Asia.
Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes
11y
If you are starting off in Northern Oakland County, lots of solid Real Estate in Northern Oakland/Macomb County. Work Pontiac with Avondale Schools, Sterling Heights with Utica Schools. I don't know how much cash and credit you have, but stuff between 75-125K is plentiful, and people will pay nice amounts of rent. Like $900-$1500, and they have stable jobs. Avoid Clawson(overpriced), or anything with Clintondale Schools. If its Warren Consolidated Schools make sure you get a deal, that area is changing, and you could be holding a dud in 5 years. Still keep an eye on Warren because they are trying to create a "downtown". Lots of people have already hit the Van Dyke corridor anticipating, but we are waiting because I believe there will be inventory regardless, and money to be made.
I have lots of friends, and none of them when I am out for dinner or drinks say "I'm saving up to move to Warren". Warren is safe, its solidly blue collar, working class. There are 300K homes in Warren. IDK why you would buy a 300K home in Warren when you could just as easily buy the same exact new construction in Clinton Twp or Macomb Township, but thats just me.
Of course If you can get into Rochester, B-ham or Troy by all means do it. We are trying to break into that market in the next 12-18 months. We just don't want a junk property though, we want a quality Brick Home. We only do brick, don't ask me why,there are reasons, but I find them stupid because we don't plan on holding properties for more than 10 years.