Mohican Regent Neighborhood in DetroitHi,

Mohican Regent Neighborhood in DetroitHi,

Member since 2019 · 4 posts · 0 votes

Hi, I am completely new to investing and have decided to look out of state because properties are too expensive where I live. I found a potential property that looks nice but the neighborhood scares me from what I'm reading online. It's in the 48205 zip code, Mohican Regent area. Most reviews of Mohican Regent are awful with the exception of a neighborhood association that is potentially starting to turn things around. But this house is on a very lovely street from what I can tell on Google Maps. I can't visit the area in person for another couple of weeks. Is Google Maps Street View just deceiving me outright? The prices of comps around this house aren't in the toilet either.

This would be my first investment property altogether and I'm as interested in understanding the process in this area as I am in securing this property.

Thank you in advance.

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  • Detroit · Member since 2015 · 22 posts · 5 votes
    6y

    I recently moved to Detroit for my job. It is definately not as bad as people make it out to be. That being said, neighborhoods vary from street to street. I didnt believe it either until I saw it with my own eyes. There are areas where almost million dollar homes are a street or two away from crumbling, falling down homes. 

    A house may look perfect, and the neighbors are perfect, but there are holes in the house 3 doors down. Crazy.

  • Member since 2019 · 4 posts · 0 votes
    6y

    Thanks Ben! It seems to me like in order to invest in Detroit you have to feel comfortable investing on a block by block basis

  • Realtor · Grand Rapids, MI · Member since 2020 · 5 posts · 0 votes
    6y

    @Leia B. I work with a lot of investors in Detroit and know the area very well. With that being said, Detroit can be a great place to invest, but only in the right places. 48205 is a big no, even a nice house there is <20k because the area is so bad. I’d suggest staying completely out of 48205.

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    You can't invest in Detroit by zip code!

    Yes, some zip codes are statistically better than others, but we can show you money losing streets in the best zip codes.

    Highly recommend visting Detroit before investing. You will better understand the challenges and may also decide to invest in the Ring Cities around Detroit instead.

  • Member since 2019 · 4 posts · 0 votes
    6y

    @Drew Sygit I'm planning to drive up the last week of the month. Can't wait to see what it's like for myself. As a newbie I don't have a lot of money to spend so I'm limited to what the Land Bank and auctions have to offer.

  • Member since 2019 · 248 posts · 248 votes
    6y

    I'm always amazed how many OOS investors are willing to lose it all in Detroit... I have seen 100's lose it all in just the last 24-36 months

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    @Leia B. Why are you focusing on land bank sales and auctions? All those properties will need a ton of work.

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    6y
  • Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Paul S.:

    I'm always amazed how many OOS investors are willing to lose it all in Detroit... I have seen 100's lose it all in just the last 24-36 months

    Hand me some popcorn, bud.

  • Member since 2019 · 4 posts · 0 votes
    6y

    @Drew Sygit I know someone who flipped a land bank house and it worked well for her but after having observed a few auctions and run some calculations on the actual cost of repairs (much higher than their estimate) I don't think that's the way to go for me. I'm driving up to MI and OH next week to look at neighborhoods in person. 

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    @Leia B. So now you understand the reason we questioned your plan:)

    It's kinda difficult for us to warn newbies to the area and investing, about Detroit challenges. Everyone thinks we have an alternative reason, but all we want them to do is invest wisely so they invest MORE! That's not going to happen if you have a bad experience on your first or second deal.

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