Should I invest in Detroit

Should I invest in Detroit

Wholesaler · North Las Vegas, NV · Member since 2015 · 9 posts · 3 votes

Hello BP I've been thinking about investing in Detroit and wanted some help before threading into unforeseen territory. What is your overall feeling about Detroit? Is the Economy picking up? What things should I look out for?

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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
10y

There are better areas in Michigan using the same investment money.  Detroit investing should be left to those that actually live in the area.  There's money to be made, but you need a much better knowledge of the area than the normal knowledge you would need for any other out of state investment.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    10y

    There are better areas in Michigan using the same investment money.  Detroit investing should be left to those that actually live in the area.  There's money to be made, but you need a much better knowledge of the area than the normal knowledge you would need for any other out of state investment.

  • Garden City, MI · Member since 2016 · 5 posts · 3 votes
    10y
    Hi Joe, Any particular areas you think would be good to focus on? I am in the Livonia area, was looking at Livonia, Westland maybe Garden City. Still trying to make that first step to invest.
  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    10y
    Originally posted by @James Cecil:

    Hi Joe,

    Any particular areas you think would be good to focus on? I am in the Livonia area, was looking at Livonia, Westland maybe Garden City. Still trying to make that first step to invest.

     I have almost 30 in exactly the areas you mentioned 

  • Garden City, MI · Member since 2016 · 5 posts · 3 votes
    10y
    George P. Great! I am excited to start, just need to get my HELOC setup. Hope you don't mind me picking your brain, I hope to have your kind of success one day!
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    10y
    Originally posted by @James Cecil:

    Hi Joe,

    Any particular areas you think would be good to focus on? I am in the Livonia area, was looking at Livonia, Westland maybe Garden City. Still trying to make that first step to invest.

     Yes...and Redford, Ypsilanti, Inkster, and more.  The list does you no good though without that ability to actually analyze those markets for specific things, and then analyzing the properties in those markets to match that same list of specific things.  Those specific things I refer to makes up a property profile, that is generated by your financial needs and starting point.

    The ability to analyze a market, and then find the micro-markets within those markets, is critical to REI. Without that ability, you're guessing.

  • Garden City, MI · Member since 2016 · 5 posts · 3 votes
    10y
    Joe Villeneuve , thank you sir for the advice. I think I need to find a mentor so I can start off on the right track. The specifics you mentioned i need to learn and I know no one personally that can help me.
  • Investor · Detroit, MI · Member since 2014 · 755 posts · 462 votes
    10y
    Originally posted by @Dontae Scott:

    Hello BP I've been thinking about investing in Detroit and wanted some help before threading into unforeseen territory. What is your overall feeling about Detroit? Is the Economy picking up? What things should I look out for?

    I invest in Detroit and in seven different suburbs but have always tried to stop people from buying properties in the area unless they were partnering with a knowledgeable local investor.

    Detroit has houses better than 95% of the cities in the US but it also has houses that are worse than 95% of the cities in the US both inside the city limits of Detroit!

    Block by block is too general. I usually don't buy a house unless I like the neighbor.

    Knocking on the door of the house next door, sometimes it is the solution when I meet a neighbor that has lived there 30 years. BUT sometimes it is obvious THE NEIGHBOR IS THE PROBLEM!

    Economy is GREAT. Compare Average weekly wage of Wayne County of $1059 (Detroit is in Wayne County) with the Average weekly wage in Clark County of $843 (Las Vegas) and Wayne county increased by 3.1%. Clark County increased by 2.4%.

    Link is Here

  • Property Manager · Flint, MI · Member since 2016 · 30 posts · 4 votes
    10y

    A great place to get an idea would be the Detroit Free Press or the Detroit News. 

    I looks like downtown right now is the hotspot. 

    http://www.freep.com/videos/money/business/2016/04/23/83337410/

  • Wholesaler · North Las Vegas, NV · Member since 2015 · 9 posts · 3 votes
    10y

    That's some great advice Richard I appreciate the information. I've been trying to connect with individual investors out there but its been a battle! No one seems to want to network with out of state investors @Richard Dunlop

  • Flipper/Rehabber · Orlando, FL · Member since 2016 · 311 posts · 150 votes
    10y

    No

  • Investor · Pinckney, MI · Member since 2015 · 95 posts · 24 votes
    10y

    All of my rentals are in Redford, Southfield, Livonia and Farmington Hills.  All are performing well and have mostly good luck with tenants.  But I do spend a lot time in the areas and talking with the people.

    The question I have, is there a way to determine how many of the recent sales are to investors?  Rental investors specifically.  Maybe it comes from spending time on BP, but I'm getting concerned about rental saturation in these areas.

    Thoughts or comments? 

    (not intending to hijack your thread, just helping everyone looking for data)

  • Property Manager · Flint, MI · Member since 2016 · 30 posts · 4 votes
    10y

    @John Clark, I can't speak specifically for those areas, but the Flint area has a lot of rentals.  Many people here are lower-income and not in position to buy a house.  There is definitely the demand. 

    You might want to try the local landlords association to see if they can give you some stats.

  • Investor · Pinckney, MI · Member since 2015 · 95 posts · 24 votes
    10y

    thanks for the idea @Account Closed

  • Real Estate Agent · Flint, MI · Member since 2015 · 270 posts · 71 votes
    10y
    I can assist with Flint if you need help John Clark
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    10y

    This question is asked weekly on BP. @Dontae Scott in the upper right hand corner of the web page there is a search box for Bigger Pockets. Search Detroit and you will see this topic endlessly debated. Just a suggestion to save everyone's time.

  • Real Estate Agent · Prince George's County, MD · Member since 2016 · 109 posts · 40 votes
    10y
    I have some friends that are doing very well in Detroit. However, they are native to the city and very well connected.
  • Real Estate Agent · Prince George's County, MD · Member since 2016 · 109 posts · 40 votes
    10y
    Clarence Scott I would love to talk to you about investing in Flint
  • Wholesaler · Redford, MI · Member since 2015 · 153 posts · 50 votes
    10y

    @Dontae Scott im a native of Detroit ill be happy to work with you , Best of luck to you

  • Flipper/Rehabber · Jersey City, NJ · Member since 2016 · 158 posts · 86 votes
    10y

    @Kyle Holsey I am interested in getting started either in Detroit or the neighboring suburbs like Dearborn, Westland, Garden City, Southfield etc.. can we talk and see how can we try to make this work. 

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    10y

    don't do it

  • Wholesaler · Redford, MI · Member since 2015 · 153 posts · 50 votes
    10y

    @KunalMishra Sure connect with me lets discuss your needs and what your investment goals are

  • Wholesaler · Redford, MI · Member since 2015 · 153 posts · 50 votes
    10y

    @George P. Just curious , Why do you suggest not investing here in Detroit ? i and many of if investors have and been receiving great returns for years ! :)

  • Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    10y
    Originally posted by @Kyle Holsey:

    @George P. Just curious , Why do you suggest not investing here in Detroit ? i and many of if investors have and been receiving great returns for years ! :)

     because I am a selfish house hoarder 

  • Wholesaler · Redford, MI · Member since 2015 · 153 posts · 50 votes
    10y

    @George P. lol why ? you have to have a abundance mind set there is enough to go around my friend

  • Investor · San Francisco, CA · Member since 2017 · 24 posts · 12 votes
    8y

    @Kyle Holsey and @George P.

    Are there any neighbor hoods you would avoid?  I am gonna buy a turnkey in Detroit, but I don't know the area that well yet.   I'll have a property manager too.  Any areas I should avoid....??  My budget it $40-60K per door.

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