Where to buy in Detroit?

Question

Can you Detroit investors let me know the areas to buy in?  Which areas do you think will be east to sell in, should I purchase there?  Thanks!

Isaac A. · Answer

This post is 7 years ago... Can some one update on the best places to buy rental properties in Michigan/Detroit

Eric M. · Answer

I am just curious how you expect to wholesale in an area where you don't live and obviously don't know very well?

Where is your advantage or edge in finding good bargains to wholesale?  I assure you that there are lots of local, smart investors there looking for deals too.  Not a lot of low hanging fruit.

Wendy Patton · Answer

I have been investing in MI - Detroit area for 25 years and that is the ONLY place i would not put my money now.  The suburbs are much safer (literally) and your investments are much, much (should i say it again :-)?)  easier to handle.

I have a saying - as a woman if I would not walk down the streets at night in the dark by myself - why would I want to invest there.

Unfortunately the city is a mess - broke and poor leadership.

It is difficult to find an honest property manager there (heck if you know of one tell me) - any good ones I know won't manage there.  The reason...as soon as a home is vacant - it is pretty much stripped (always of copper and usually the kitchen, furnace, hot water heater etc) so the cash flow sounds oh so good......and it is when the tenant is paying and it is occupied....but when it is not....the expenses to turn it over again can be as much as the initial investment -

my 2 cents..but hey call some suburban Detroit property managers and get their input if you want to hear their input. (not the ones that are selling you the properties)

Now with that said....the guy above me posted some good zip codes...that could be the case where those are much less crime filled areas...he will know more then me....but unfortunately much of the city is really changing for the worse...
I would rather buy in the burbs and pay 30k and rent it for $900/month then pay $20k and get $800/month WHEN it is occupied and they are paying.

Kevin Kaczmarek · Answer

here are five quick zip codes in Detroit that can provide good properties. Again, I caution everyone, to make sure you know someone on the ground before buying in Detroit.
48209
48210
48219
48221
48235

Account Closed · Answer

There are many areas in the suburbs of Detroit that are moving fairly quickly. However, I would not invest in the actual Detroit area at this time. What are your investment stratgies? 
          
          Greg

Natasha Randolph · Answer

I've spoken to people who work in Detroit, but "don't want to live there".  Southfield, Oak Park, Farmington are good lower priced choices.  On average about a 20 minute drive on the main hwy into the city (John C. Lodge).  An easy commute with a suburban lifestyle-WATCH THOSE TAXES THOUGH!

Kevin Kaczmarek · Answer

newlife,

I have a different opinion about Detroit than most. We are actively selling about 300 properties a year, mostly in good areas of Detroit.
There are fantastic areas of Detroit, East English Village, University District, Rosedale Park, Palmer Woods, Indian Village, etc.

You want to get involved in properties that are not the bottom of the barrel. There is plenty of "garbage properties" in Detroit. Avoid daisy chain lists and package deals from those that are willing to send 300 properties at a time, on some list. Most likely they are not the originator of the list, and they do not know enough about the local market.

Plenty of people have been burned investing in Detroit going off numbers alone. If you are on the ground here, or have someone on the ground here, you will find that there is no higher rate of return in the country than Detroit.

As to the suburbs, there are some great suburbs as well. All of the above applies, and your wholesale strategy begs the question, what type of end buyers are you looking for? Investors to fix and flip on a mortgage? That model is not working right now around here. If its a buy and hold strategy, then look in cities like: Dearborn, Garden City, Redford, Dearborn Heights, Westland to name a few. Those are stable suburbs that investors like to hold onto.

I hope this helps. Let me know if you have any further questions.

Katrina P. · Answer

Does anyone have any insight as to the most sought-after areas in the suburbs?  Please share.

Katrina P. · Answer

I would only be wholesaling...not interested in rehabbing/flipping or landlording there at the present time.  So I'm looking for the areas that the investors there are anxious for...that way I can unload quickly when I buy.

Where to buy in Detroit?

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