Detroit investors - structure type

4 Replies

If any of you are involved in this market, do you have any experience with wood frame homes versus brick homes? Specifically, do you have issues with finding tenants for wood frame homes when compared to their brick counterparts?

The area where I tend to invest, Westside of Detroit, I see the brick homes are easier to rent, better neighborhoods, and more of a community type environment. If you can I would lean more towards brick homes but it is dependent on the street. 

HI Igor, I have been investing in the Detroit market for over 15 years.   While I agree that a brick house will tend to attract more applicants I think that the area of the house is more important.   I would definitely suggest investing on the west side of Detroit and unless you are in Rosedale Park, University District, etc I would suggest investing in subsidized housing (Section 8).  Interestingly, there is no differentiation on what is being paid by Section 8 for brick versus frame.  The only metrics that are used to determine rent are the amenities inside the house (ceiling fans, garbage disposal, AC, etc)  This is all used to determine  "rent reasonableness".  I will also share that not all housing agencies are alike.   I have routinely received rents above $900 in markets that my colleagues are receiving $700-$800. 

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