Hi! I've lurked around for several months before creating an account. Quick intro, my wife and I own just three investment condos in Chicago Metro and Madison, and all are self-managed or by my mom (realtor/property manager/investor). We're currently in Colorado and would like to invest long-distance and use professional property management. After some research I became interested in Detroit Metro, more specifically, in on/off-market SFR and duplex/triplex priced between $20k to $80k or so. Needless to say, all are D or C neighborhoods at best IMO, with which I'm unfamiliar since our condos are B or A.
My investment goals (as of now) are buy-and-hold rentals. I'll try to keep my questions specific and hopefully not too redundant of what's out there:
1. I know Detroit, like most metros, have areas/blocks that are hotter/better investments than others. However, are there any neighborhoods that in your opinion, are totally NOT worth investing in at all from a risk/reward perspective?
2. The first serious deal I'm looking at is a single family residence in Regent Park (48205), which per neighborhoodscout's crime map, is half-way decent, relatively. Anyone have extensive knowledge in Regent Park or an opinion on its trending?
3. The cap rates and CoC ROI for these $20k-$80k-ish SFR or du/triplexes seem ridiculously good, especially compared to Denver metro. Are those ROI #s actually consistently achievable assuming good tenant screening?
4. Did anyone else become interested in investing in Detroit as an out-of-state investor? Did you follow through and complete some deal(s), or did you decide to invest elsewhere/not invest, or are you still analyzing? I'd like to hear some recent perspectives.
Thank you for any inputs!
We manage a lot of Detroit rentals for OOS investors and try to help then avoid Class D properties. Very difficult to manage and make an investor money. Also, there are plenty of Class C properties to choose from!
We warn you to be VERY careful about buying anything under $50k. Majority will need extensive repairs to bring up to RentReady condition - unless you want to be a slumlord.
What else can we assist you with?