Upcoming Opportunities in Detroit?

Question

I heard a theory recently from a preparedness community that dead/dying cities such as Detroit are likely going to be revived and have manufacturing brought back to the U.S. due to current events. I'm sure we all know there are some bad areas there, but what are the chances it becomes prosperous in the near-mid term future? I see some properties that could be absolute gold mines if it were too go that way, and if not it's a small cost to pay as a gamble. I'm just wondering if the sentiment of it possibly coming back to life is more wide spread than preppers and other small pockets of folks. What's the likelihood of a cheap property now turning into a gold mine over the upcoming years?

Austin McClain · Answer

Massive Factories like Intel and the Honda/LG plants are being built in Ohio. Th Columbus area did not previously have a big manufacturing pull. It looks like companies are going to states with favorable tax laws and a lot of open land within an hour drive of major cities.

Jaron Walling · Answer

Don't add Detroit to the special piggy bank. Everything Detroit offers can be found in OTHER mid west cities including my own. My home town just secured a massive deal with Panasonic to build, drum roll, EV batteries. Honda is investing millions into an existing plant in Ohio to build EV's.

I agree with the resiliency aspect and the big three headquarters are there, but it doesn't equate to all the jobs.

I have fear for the industry and specifically the auto loans people are paying. The average auto loan payment is over $700 per month with >6 year terms. The national auto loan debt total is over $1.5 Trillion.

Paul S. · Answer

Due to what current events?

Greg Scott · Answer

You are proposing a speculative gamble.

Your premise relies on the fact that manufacturing coming back to the US will come back to the same cities where manufacturing used to exist.  That is a bad assumption.  Just look at where the new factories are being built today.

Joe Hammel · Answer

@Justin Molzhon

My personal portfolio is here and over the course of the last 3 years my average price point is around $100k, cash flow around $400/door, appreciation has been 15%+. All my tenants pay (18 doors)

It’s just impossible to argue that it’s anything but fantastic.

Don’t get caught in the $20k property and hope the location explodes. This is where the horror stories come from and money is lost.

Do buy solid cash flowing investments in good surrounding areas and the current cash flow will carry them through a strong future.

After thousands of experiences..Here is what we see work the best.

Purchase: $80k-$130k

Rent: $1200-$1500

ROI: 10-14%

Cash flow: $250-$350/door

Appreciation: Double digit (for past 10 years, will gladly send data)

Location: C+, B-  (suburbs and certain markets)

We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, mortgage, Amazon fulfillment, and more jobs.

The bad reputation comes from OOS investors wanting $20k D market properties. We don’t buy those lol.

Muhammad Abdullah · Answer

Not a bad idea I've heard similar conversation. The city is just so damn corrupt its difficult to get a straight answer from the people in power. I would want to know there desired revitalization area confirmed first, then I'll only purchase land no structures on it.

Best of Luck!!

Simon Ashbaugh · Answer

could be the case. take Cleveland for example, Cliffs has been dumping a ton of money into the steel industry up there, and the population is rising for the first time in a while.

Sam McCormack · Answer

@Justin Molzhon

I'm not sure about Detroit (i'm not familiar with the properties there), but the midwest has potential everywhere for something like this. Cleveland, Greater Cincinnati, Columbus, Indianapolis, etc. If you're ever interested in Greater Cincinnati, let me know and I can do my best to answer any question you may have! Or we can connect! Always love to meet new people!

Alicia Marks · Answer

Not anywhere that you'd want to invest for the most part. The Detroit Land Trust is still selling low, but the rehab is extensive and the government speed is slow.

Eliott Elias · Answer

You guys still buying houses for $1000 over there?

Upcoming Opportunities in Detroit?

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