Michigan wins again - Detroit is in top 5 for flipping real estate

7 Replies

As someone who grew up in the metro detroit area for 20+ years, this article seems pretty worthless to me. There were ALWAYS areas that flippers and the like did better, i.e. Birmingham, Royal Oak,etc... To me, it just means there were areas that were so depressed, they were given away, so they had no where to go, but up. The area as a whole need to appreciate in value to "come back". Also still not sure Detroit City Council "gets it" yet, ton of bias and political agendas to get through.

Originally posted by @Prag Patel :

As someone who grew up in the metro detroit area for 20+ years, this article seems pretty worthless to me. There were ALWAYS areas that flippers and the like did better, i.e. Birmingham, Royal Oak,etc... To me, it just means there were areas that were so depressed, they were given away, so they had no where to go, but up. The area as a whole need to appreciate in value to "come back". Also still not sure Detroit City Council "gets it" yet, ton of bias and political agendas to get through.

 How long have you been away from Detroit?

Originally posted by @Joe Villeneuve :
Originally posted by @Prag Patel:

As someone who grew up in the metro detroit area for 20+ years, this article seems pretty worthless to me.... 

 How long have you been away from Detroit?

 Joe's question seems relevant.

I spent 4 years in college in South Carolina And I've heard a lot of bad things happening in Charleston in the news lately. But since I haven't been back in a long time I would not feel qualified to critique an article on @Prag Patel's home turf.

So I believe the question is whether Detroit is coming back or not. We can argue what coming back means. For me, it means RE prices coming back to late 90s prices. I'm sure flippers are doing well there, and that's great. For those like my father who have held real estate prior to 2000, it has not been a pleasant ride. And we're talking prime locations off the Lodge. Detroit as a whole has a long way to go to be "back".

I have not been a resident of Michigan for over 10 years for the record. I've been living in many areas across the country, so I really can't comment on Charleston as I haven't been here long enough to understand what makes this place tick.

@Prag Patel

  it tic's ( Charleston) because of physical constraints ( surrounded by water)

Boeing moving in and building the 787 and they just doubled production and will be building additional facilities and that aircraft is the aircraft of the future.. ( best gas mileage and 4k ft pressurization ) Mercedes Benz bringing the sprinter van production to the area, Volvo just announcing a new plant to be built.. BMW builds 75% of their cars in the state.. 14 hotels under construction in Charleston... Cruise ship industry is making it an embarkation destination...  And on and on and on..

The tragic shooting aside ( as that can happen anywhere with a Nut case)..

Detroit.. for sure has to be one of the top flipping cities simply by shear volume of avalaible hosues to flip and at price points that are so low.  IE under 50k and under 5k or next to free. so when you have a wholesaler buy a home for 5k and flip it for 10k that skewes the data.. there are literally thousands of those homes avalaible .. other areas you just simply do not have the product to flip

@Prag Patel

IMHO, Charleston is a 97% seller's market right now, which is a good news/bad news situation. As you know, inventory is extremely low, making it difficult to buy properties at a discount, but that low inventory makes it relatively easy to sell rehabbed houses or new construction.  We have a system in place that kicks up good deals and that system is keeping us growing and thriving.  We are also finding that we can pay a bit more this year than we did last year, and still post good profits, due to low inventory and rapid appreciation.  The fact that we are in-and-out of our properties relatively quickly protects us from the downside.

@Jay Hinrichs  has pointed out repeatedly that buy-and-hold is difficult in our market because our rents are low relative to the cost of property, and our taxes are relatively high. Our saving grace on the buy-and-hold side is solid, reliable appreciation.

I don't know Detroit personally, but I recently spent 3 days at an investor's retreat with 2 big players from Detroit, and based on their instructional presentation and dinner conversations, From what Robert & Frank shared with us, the situation in Detroit couldn't be more different from Charleston.  These guys are wholesaling properties 20 at a time.  I learned some excellent "mindset" lessons from these colleagues, but the buying and selling strategies they use are pretty ineffective in my home market.

@Russ Scheider

  some one has to live with the appreciation !!

I find a market like Detroit more like being in the used car business.. were you go to the big auto auction can buy 30 to 50 cars in a day... take them back to your lot and sell them off. or package them up and ship them to Saudi or Africa ! 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.