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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Kyle Holsey
Wholesaler · Redford, MI · Member since 2015 · 153 posts · 50 votes
9y
@mattsanford yep there are a few areas you should avoid inbox me the property your thinking about buying and ill let you know if the area is a go or not
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Keyonte SummersPro Member
Harper Woods, MI · Member since 2017 · 384 posts · 311 votes
8y
hey @Matt Sanford I know the detroit area pretty well I live and invest in that area. I actually have a home coming on the market soon that fits your budget. I would avoid the inner city the pricing get higher the close to downtown you get. East english village, harper woods, finney. These here are great neighborhoods to look into.
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Anthony Smith
Agent/Investor · Detroit, MI · Member since 2016 · 66 posts · 46 votes
8y
If you are interested in the Detroit market and would like a quick education on investing in it. Feel free to contact me. My group is one of the top 1% in the state and we handle investors with one home to large portfolios local and overseas. Other members are right it is a high risk market not for the beginning investor and you do need someone from here. I am an agent as well as my group owns several cash flowing Detroit properties. Just remember you can't spell detROIt with out ROI
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Nina Marinova
San Francisco, CA · Member since 2017 · 1 post · 0 votes
8y
How are Viriginia Park, Boston Edision and Rosa Parks neighborhoods? Would you recommend investing there? Thanks.
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Joe HammelBusiness Member
Real Estate Agent · Metro Detroit, MI · Member since 2018 · 614 posts · 666 votes
6y
@Dontae Scott

I truly believe the City of Detroit will make a come back and make a lot of people rich. There are a lot of good people and resources putting effort in to the City. That being said, I don't recommend it to first time investors or out of state investors. I think it is arguably one of the most complex cities with the highest risk. One side of the street can have a $500,000 home and the other a $20,000 home with low likely hood of appreciation or solid ARV. It takes a lot of HW and accurate studying to pinpoint a good purchase.

I don't recommend it to those coming to me looking for advise. I DO think it can be done, if all due diligence is completed. I just helped an investor from California, who had his heart set on Detroit, purchase a property in a neighborhood (Bagley, Detroit) that I think was a fantastic purchase. Under Market value at $85k, very little work needed, area having 20% appreciation the past 2 years. However, it's buying the 10k-20k house looking for a $100k ARV that's an entirely different game.
I recommend the surrounding suburbs, to my new and out of state investors. Purchase $60-80k house in Warren or Redford MI. Light rehab/updates B or C neighborhood. Rents: $900-$1200. ROI 15% and cash flow $300/door (obviously some factors will influence this). Such a solid first time investment. I can send examples and BP Calculator Reports if curious.

@John Clark

An agent can search Public Record in the MLS for "Non-Homestead" purchases, to give you an idea of investors vs home buyers. Let me know if you want to see some of this data for the area.

@Matt Sanford @Matt Sanford @Matt Sanford @Matt Sanford @Matt SanfordGreat Market for this is Warren Michigan. See numbers above ^. Why? Low price entry, but includes a GM and Chrysler facilities. Also, has a hospital just slightly north. These are the 2 largest Industries in Metro Detroit, both near this city. It's a working class B, C, C- neighborhood because it is close to the city but this is why the numbers work. Let me know for examples.
Good Luck All!

[email protected]248-422-1685
FIRE Realty Team - Keller Williams5380 Reviews
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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @Joe Hammel:
@Dontae Scott

I truly believe the City of Detroit will make a come back and make a lot of people rich. There are a lot of good people and resources putting effort in to the City. That being said, I don't recommend it to first time investors or out of state investors. I think it is arguably one of the most complex cities with the highest risk. One side of the street can have a $500,000 home and the other a $20,000 home with low likely hood of appreciation or solid ARV. It takes a lot of HW and accurate studying to pinpoint a good purchase.

I don't recommend it to those coming to me looking for advise. I DO think it can be done, if all due diligence is completed. I just helped an investor from California, who had his heart set on Detroit, purchase a property in a neighborhood (Bagley, Detroit) that I think was a fantastic purchase. Under Market value at $85k, very little work needed, area having 20% appreciation the past 2 years. However, it's buying the 10k-20k house looking for a $100k ARV that's an entirely different game.
I recommend the surrounding suburbs, to my new and out of state investors. Purchase $60-80k house in Warren or Redford MI. Light rehab/updates B or C neighborhood. Rents: $900-$1200. ROI 15% and cash flow $300/door (obviously some factors will influence this). Such a solid first time investment. I can send examples and BP Calculator Reports if curious.

@John Clark

An agent can search Public Record in the MLS for "Non-Homestead" purchases, to give you an idea of investors vs home buyers. Let me know if you want to see some of this data for the area.

@Matt Sanford @Matt Sanford @Matt Sanford @Matt Sanford @Matt SanfordGreat Market for this is Warren Michigan. See numbers above ^. Why? Low price entry, but includes a GM and Chrysler facilities. Also, has a hospital just slightly north. These are the 2 largest Industries in Metro Detroit, both near this city. It's a working class B, C, C- neighborhood because it is close to the city but this is why the numbers work. Let me know for examples.
Good Luck All!

Well said.

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Anthony Smith
Agent/Investor · Detroit, MI · Member since 2016 · 66 posts · 46 votes
6y
I work primarily in the Detroit metro area and you can get amazing deals in the surrounding suburbs Roseville, Eastpointe and Warren. You can still get in between 40k to 60k and get returns from 9% to %12. As for Detroit though its like any other fire sale many people investing get fooled by the people just because you know price and area doesn't mean you know the actual cost If you don't have an agent that can estimate rehab and turn around time then you will get burned. Also there are other areas in the country to invest but the news stories don't lie they are not going to give you 15% to 20% ROI you can still find steals in Detroit almost in the 30% ROI range. Just think if your 401K is not preforming that doesn't mean 401K's are a bad investment strategy Its because who you have handling your 401K has a bad investment strategy even if that someone is you. You can't spell Detroit without ROI try it lol
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