I'm currently looking to start investing in the Detroit area from out of state -- small MFH or SFH for buy & hold rental. I'm looking in a few mile wide area around the city including suburbs and looking to spend between $75-140k w/ minor rehab. I have some family in Royal Oak that are helpful for giving me on-the-ground impressions of areas/homes, but am curious on BP folks' thoughts. I've looked through many of the other posts on Detroit, but haven't seen much mentioned about Hamtramck, which is an area that is currently catching my eye. Any thoughts on Hamtramck or other possible neighborhoods/suburbs that could fit my investment criteria would be much appreciated. Thanks!
Bagley and University are nice places but it comes with a price because many are aware now and investors are running there. Now not to say if you find a deal there not to buy, you buy in those areas (they are hot areas for a reason lol)! Bagley and University District have been on fire but it's a lot of other small pocket areas in Detroit that still has potential and lower priced.
@Andrew Combs A lot of folks are being priced out of Ferndale and and they are moving to the next door suburbs. Hazel Park to the East and Oak Park to the west. Prices in these two burbs are still reasonable and the proximity to downtown Detroit is great. Just a 10 mile drive down Woodward and you are downtown.
@Andrew Combs I don't know a /ton/ about Hamtramck, but I did frequently play their HS in soccer back in the day.
Their bleachers had homeless people living under them. Seeing beds setup with people sleeping during one of our games under the lights. That's probably the most vivid memory I have of Hamtramck.
Definitely don't want to be walking around down there without protection. It's not somewhere I'd be putting my money if I was looking at investing in the suburbs around Detroit.
Not to say there's not opportunity, but it's not the nicest place to live & your tenant pool probably won't be quality.
I appreciate you all taking the time to reply. Bala, what in your opinion are the negatives to Hamtramck? I've got some ideas what they would be but I'm interested to hear your take on it.
I've been hearing a lot about Bagley and University, I should probably check them out more. Also, thanks Eric for the recommendations around Ferndale, I'll be looking into those too!
I'm currently looking to start investing in the Detroit area from out of state -- small MFH or SFH for buy & hold rental. I'm looking in a few mile wide area around the city including suburbs and looking to spend between $75-140k w/ minor rehab. I have some family in Royal Oak that are helpful for giving me on-the-ground impressions of areas/homes, but am curious on BP folks' thoughts. I've looked through many of the other posts on Detroit, but haven't seen much mentioned about Hamtramck, which is an area that is currently catching my eye. Any thoughts on Hamtramck or other possible neighborhoods/suburbs that could fit my investment criteria would be much appreciated. Thanks!
If you want to rent in Hamtramck know how to speak:
Polish
Albanian
Tamil
Bengali
Arabic (Yemen/Saudi based)
I've found a few nice deals in Mexicantown, but I self manage and when 80% of the population speaks Spanish it can be difficult, so I backed off. I'm trying to rent a house out in Sterling Heights and 1/2 the prospects speak Arabic or Assyrian. I am communicating with the kids and not the prospects because they of a language barrier.
If you want in early somewhere you can get a steal north of indian/west village or try to get a steal along Jefferson east of Indian village but west of the Chrysler plant. SFH and MFH to be had for under $50K. All the neighborhoods you mentioned came off the board 2-3 years ago investment wise. Also, take a look at Fraser it has solid schools and things come out under $100K periodically. It would be a solid B-Rental.
Bagley and University are nice places but it comes with a price because many are aware now and investors are running there. Now not to say if you find a deal there not to buy, you buy in those areas (they are hot areas for a reason lol)! Bagley and University District have been on fire but it's a lot of other small pocket areas in Detroit that still has potential and lower priced.
One of the issues I'm running into on the real Detroit-level deals is securing financing for such low priced real estate. I'm going the conventional mortgage route and haven't found anyone willing to go lower than a $70k property for investment. Anybody have thoughts on how to get around that for somebody starting out?