Investing in Detroit, MI

10 Replies

Hi BP Community,

I am new to the Detroit MI market area and will like to buy a Single-Family Home (SFH) as a long distant investor. One of the issues I am having as I conduct my research/ analysis is that I am not familiar with different areas, specifically blocks. Unlike my local market that the value of the property is driven by the zip code, I found this to be the opposite. With that been said, I am hoping that for those who have experience investing in the Detroit area I was hoping if you could please share with me how you were able to narrow your search to minimize your risk. Also, even tough I am targeting SFH homes, I will greatly appreciate if SFH is the right entrance in this market, and referral of realtors who have experience working with investors. (any feedback is greatly appreciated).

Regards,

Robert.

@Robert Cooper Hi Robert. You're 100% correct that zip code is not a factor here. It's all about the neighborhood itself. To make things even more confusing, some neighborhoods have two different zip codes lol. The biggest factor in the area you choose is your price point and what type of tenants you are attracting (air bnb, students, section 8, etc). Feel free to reach out and I can get you some numbers on acquisition/expected rental rates.

@Robert Cooper hey Robert it’s important to have boots on the ground being a distant investor here in Detroit, MI. Reach out to the people that comment below and see if you can find the investor friendly realtor. Pm me if you want my personal suggestions

@Robert Cooper welcome to Detroit, the city where you will find $300k houses and $30k houses in the same zip code! I would suggest discussing the type of tenants you want to attract with your realtor and letting that dictate the location you invest in. You might also want to consider what you want your units to cash flow a month as some areas rent for more than others. I sent you a message. Hope this helps!

Originally posted by @Robert Cooper :

Hi BP Community,

I am new to the Detroit MI market area and will like to buy a Single-Family Home (SFH) as a long distant investor. One of the issues I am having as I conduct my research/ analysis is that I am not familiar with different areas, specifically blocks. Unlike my local market that the value of the property is driven by the zip code, I found this to be the opposite. With that been said, I am hoping that for those who have experience investing in the Detroit area I was hoping if you could please share with me how you were able to narrow your search to minimize your risk. Also, even tough I am targeting SFH homes, I will greatly appreciate if SFH is the right entrance in this market, and referral of realtors who have experience working with investors. (any feedback is greatly appreciated).

Regards,

Robert.

..... I am also an out of State investor

Its been an interesting ride for me so far. I have had some bumps along the way, but finally got my 10 properties performing

Now in saying this it wont work if your tenants don't pay, infact you will go backwards very quickly

Whichever way you paint it .....if you are looking at higher cashflow you are also looking at higher risk due to demographics

Its not all bad .... we are now seeing prices rising, but its a matter of persistence and working on getting the right team on the ground

All the best to all, and happy investing


 

Where you invest depends on a few factors.

What type of tenant are you looking for?

Your budget for your SFH?

Your plan as far as scaling, the reason I say that is if you plan on buying several then you may want to pick an area where you can get several in the same area?

If you looking for more appreciation or more cash flow?

There are some good appreciating areas and there are some good cash flowing areas and there are some that have both, just know as much as your plan as possible before you venture out.

I am an out-state investor that invests only in Detroit, but I am from there originally so I don't feel like an out of state realtor.