Hello,
I plan on investing in Detroit some time in the near future. Personally, I think this will be one of the biggest investments in real estate once Detroit figures everything out. I am looking for advise from others on where the best zip codes are in the city, where should I invest, etc.. Any advise from investors in/around Detroit would be great...
I'm not actively investing in the city of Detroit so I won't pretend to be an expert in that market on a block-by-block basis which is what's necessary. There are several challenges to becoming expert in the Detroit market.
One, the city is very large. In terms of area, Detroit is larger than San Francisco, Boston and Manhattan combined. Imagine trying to be an expert regarding real estate values in all three cities simultaneously.
Two, many areas are in transition, some upward but most downward. Detroit's population dropped from 870K to 711K from 2000 to 2010. The majority of that was in the second half of last decade. There are areas that declined rapidly in just a few years. There are areas right now that are seeing abandonment.
Three, the future is uncertain due to Detroit's financial condition and the presence of an Emergency Manager. Detroit's Mayor Bing has talked about plans to consolidate city services in certain areas resulting in more-favored areas and less-favored areas. The plan was never approved or implemented, which areas are which is obviously a huge political football which, if a similar plan is enacted, will be subject to contentious political fights. However, Mayor Bing has no power under the Emergency Manager. We don't know what the Emergency Manager, Kevyn Orr, will do with regard to this plan or anything else, aside from the fact that the city's creditors and bondholders will be taking a huge haircut. It's rumored that they'll be getting less than 10 cents on the dollar.
Four, which areas would be "best" for you depends on your tolerance for risk, desired return and frankly, how much "crap" you can handle. There are up and coming areas with high demand, low vacancy and momentum, like Midtown, Downtown, Corktown, Woodbridge and others but your return will be very different from that available in stable or semi-stable residential neighborhoods, or in war zones. Most people want to invest in Detroit because they see huge ROI projections from the turnkey folks. Those properties are not in the up and coming areas.
Fifth, your final sentence, "I know it will be a good investments if I get sound info and pick my spots right!" isn't how investors think or talk. There's no guarantee that Detroit's population won't bottom out around 600K and your properties won't be located in soon-to-be-abandoned neighborhoods, trashed, scrapped, gutted and burned. Detroit was a city of 2.0 million and over time 1.3 million left. What's the value of their abandoned real estate, much of which are now dirt lots surrounded by other dirt lots?
Finally, understand I say all this as someone who actually likes/loves much about the city. I'll defend it against ignorant generalizations and trash talking but I'll also call it as I see it. Investing in Detroit is for the advanced investor. Feeling lucky or hopeful isn't enough.
While this is an older, revitalized thread on Detroit - it's one of the reasons to LOVE BP! Great place to share and learn....when you have RESIDENTS of Detroit telling you the straight skinny which is what the rest of us would say "boots on the ground" trumps everything....but there is still going to be a bunch of people thinking that they can buy a $500 house and make money on it. Yes, you can make a lot of money on it by selling it off to some sucker for $5,000. BP is a mix of investors and want-to-be investors from a melting pot of financial and experience backgrounds. When you talk about Detroit, you have to split the discussion into the city & the suburbs. Even those who live there are mostly making money in the suburbs...because almost anyone who can is leaving the city proper and headed out the the 'burbs. What's the average price for a deal in the city and the average price for a deal in the 'burbs?
I love the old mansion homes of detroit....I do...and I'm cheering for the city but you won't see me parking a dime there. I want to be that guy who buys one and live there even if it's with machine guns on the roof. It's a pure gamble at this point and, I'm not much for gambling and if I were, I think I have better odds in Vegas. I looked at Detroit a number of years back...and a huge group I worked with was stuck in repairs up there on 50 or 60 homes they had purchased. I did about 200 homes for them in Atlanta and they wanted me to turn around Detroit. I honestly don't remember the area or neighborhoods but I looked for them and went home! The group abandoned ALL of those houses....all of them...just walked away because they were money pits that couldn't be turned. The timing is important in this business but to make money here, in the inner city, your time might be 20 or more years away...if ever. Again, these were all inner city homes not the suburbs where I am sure you can find good deals. If you are hell-bent on being a contrarian or you've just got money to burn...go to Detroit, let us know how it goes and we wish you the best. You have writers here with 1,000s of deals to their names and millions of dollars in cash & assets. If Detroit were the place to go...don't you think they'd be racing you to get there?
It's easy to beat up Detroit....or Flint....but I do cheer for both. When thinking about investing there, I hope the following read helps you:
"Sir John Templeton, investor and mutual fund pioneer: “The four most dangerous words in investing are: ‘This time is different.’’’
In the dot-com bubble of the late 1990s, people said it didn’t matter that most of the ballooning internet stocks had never come close to turning a profit. This was a “new economy.” Things were different.
In the more recent real-estate boom (which lead to the housing collapse and subsequently the global financial crisis of the late 2000s), it didn’t matter that homes were overvalued: We were protected by those complicated derivatives that nobody really understood. Things were different.
The lesson: Anytime you hear that things are different this time, invest as if things are the same as they always were."
It's great advice! You can take a look a econohomes.com to get a look at some detroit & flint area homes. A couple of years ago they would have a whole page of Detroit for cheap...now just a couple probably because they could never sell the ones they listed. I am not endorsing the site at all, although I have purchased from them. It's just a quick reference for other areas of the country that I might be interested in. Happy Investing!
I am a real estate "Novice" by all definitions of the term. My wife and I's families are pooling monies to get investment properties in Metro Detroit. We have secured 2 in the City of Detroit. Both have been cash cows. I knew the area REALLY well, as in I walked home through the area from college/work everyday for 3-4 years at 12AM-4AM. I still wasn't sure.
I am NOT a Realtor. I still was on the fence about the purchase because you hear so many horror stories about what happens to properties in the city. So my formula to buy or not? I sat in my car for 8 hours and watched who was walking up and down the street. I parked at about 6PM and stayed until 2AM and watched. What sold me? I saw 7-8 people walking their dogs between 8PM-midnight, by themselves. It told me it was worth a shot. My Wife and I live in the property so that secures it. The other unit is a 4 unit Mulit-family. We have a down-on-his-luck member of our church staying in one unit he pays a couple hundred dollars, but we rent out the other 3 at market rate successfully with no issues.
Most everyone on my street has a rental or two in their home they live in, or nearby. By all reports everyone is doing well...If you are buying in Detroit its zip codes 48201, 48226, 48202, 48208(careful), 48207(careful), 48214( REALLY careful). Here is a recent graph by the the local newspaper. Basically you have a street called Woodward(main street going through Detroit divides east and west). Anything in either directions 1/2 miles east or west from the (south)Detroit River to where Highland Park(north) on Woodward is a Gold Mine. We bought a house for $130K in July 2013, we have put $30K into the home, we live in two floors, and rent out a basement unit for $1000/month and the 3rd floor unit for $1300/month. Every home on our street has "Maid's quarters, Mother-in-Law Suite, etc that is generating the homeowner some nice monthly cash. The key is to be as close to Woodward as possible. I suggest no more than Five Blocks, off Woodward, or call the Wayne State Police ask them do they cover your address. My wife put the phone down to go outside to grab something and was gone for 20 minutes. I called Wayne State Police non-emergency line, and they had a car there in less than 10 Minutes to discover she was outside talking to our neighbor. Also, if you score a property near the Medical Center their Police Force or the VA Police(Veteran's Hospital) will patrol your neighborhood.
The Four Unit home was a little bit more risky but it cost only $60K. So we get $650 a piece for 3 units, and $275 from our guy from church. But we are banking on a major transportation project breaking ground within a year, and that $650/month will jump to $850.
http://www.freep.com/interactive/article/20140413/OPINION05/304130023/michigan-average-top-income-IRS-richest
The Model I see everyone doing is take a larger home cut it 2-4 different ways and rent it out. Live in one unit yourself, or have someone you know or trust stay in one of the units for a reduced amount.
I am interested in downtown/midtown Detroit for larger multifamily/office buildings. Does anyone have some details on that side of the market? I am not really interested in buying houses, and figure that downtown is probably the first place any real "resurgence" would take place.
For example, if I compared downtown detroit to Manhattan, which areas would have the "madison/5th avenue" potential. Which would have the best Chelsea/Meatpacking/West Village potential?
@Sebastien: You must have a lot of money to lose, if you'd consider Detroit while being so clueless as to think there's any equivalent of Chelsea/MP.
However, Detroit's West Village could have something for you on a much smaller scale. It's not downtown (Dan Gilbert's already bought most of our small downtown), like all Detroit it's not dense, but it's starting to happen and that may already be priced in. Also look at what used to be our Chinatown; the new hockey arena gifted to the Ilitches is going to be an ugly, deadening monster but when the parking lots become unnecessary, infill there could have economic attraction for others.
If you do come to Detroit, stay long enough to walk the area you're interested in, be prepared for a gut rehab, and rehab for weather volatility and hot/cold climate extremes. In that regard, you're smart to get out of NYC. As Barry Ritholtz says just today:
"someone has to be on the money-losing side of the trade, and it might as well be the anti-science crowd. Call it Darwin’s revenge: Ignorance as an evolutionary adaptive failure.
I have but two goals: The ability to bet on global weather volatility, and a way to express the trade I like to call “short unscience.” As soon as I figure out how to do this, I am going to make a killing."
Wow, these comments are amazing. Detroit may not be the best place in america to live or invest but this is coming from someone who actually does LIVE in the city and know several others that do as well. It's not as bad as you all are making it seem.
Wow, these comments are amazing. Detroit may not be the best place in america to live or invest but this is coming from someone who actually does LIVE in the city and know several others that do as well. It's not as bad as you all are making it seem.
well 2013 was the murder capital of the country AGAIN. There are very few good neighborhoods in the city. There are thousands of burnt out properties. There are still a huge population of poor people. There are people that think water is a human right and should be free. There are horrible schools in the city. Not all kids can go to Cass Tech.
So yes it is bad when the cops take forever to show up. Yes it is bad when the fire equipment doesn't work properly. Yes it is bad when there are 70 fires a day. Yes it is bad when the city makes a huge deal when a over priced grocery store opens up.
Its also a better investment to be in the burbs. Why would you want to pay higher taxes for a poor city. Why would you want to pay payroll taxes on your earnings just because you live in a crappy city? Why would you want to get killed on car insurance that often times are more than the car note. The properties in the burbs are often times not as old and just in a better area.
I live in Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights. I would live in all those cites way ahead of Detroit.
Wow, these comments are amazing. Detroit may not be the best place in america to live or invest but this is coming from someone who actually does LIVE in the city and know several others that do as well. It's not as bad as you all are making it seem.
well 2013 was the murder capital of the country AGAIN. There are very few good neighborhoods in the city. There are thousands of burnt out properties. There are still a huge population of poor people. There are people that think water is a human right and should be free. There are horrible schools in the city. Not all kids can go to Cass Tech.
So yes it is bad when the cops take forever to show up. Yes it is bad when the fire equipment doesn't work properly. Yes it is bad when there are 70 fires a day. Yes it is bad when the city makes a huge deal when a over priced grocery store opens up.
Its also a better investment to be in the burbs. Why would you want to pay higher taxes for a poor city. Why would you want to pay payroll taxes on your earnings just because you live in a crappy city? Why would you want to get killed on car insurance that often times are more than the car note. The properties in the burbs are often times not as old and just in a better area.
I live in Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights. I would live in all those cites way ahead of Detroit.
I have lived/owned in Rochester Hills, Roseville, Grosse Pointe Farms, Lake Orion, Sterling Heights, Detroit, Clinton Twp, and Madison Heights. I've enjoyed my home in Detroit the most, because I actually can see the impact I am having on a whole block or neighborhood. What we are doing matters, our neighbors are just thrilled someone has fixed a property, and because its livable, decent people want to live there. Versus buying in saying Madison Heights, your neighbors treat you as you are coming to destroy their neighborhood.
"I've enjoyed my home in Detroit the most, because I actually can see the impact I am having on a whole block or neighborhood. What we are doing matters, our neighbors are just thrilled someone has fixed a property, and because its livable, decent people want to live there."
^^ This. ^^
Also check out "Building Wealth With Inner City Rentals" by Al Williamson. I got my copy from Mr. Landlord Books.
Wow, these comments are amazing. Detroit may not be the best place in america to live or invest but this is coming from someone who actually does LIVE in the city and know several others that do as well. It's not as bad as you all are making it seem.
well 2013 was the murder capital of the country AGAIN. There are very few good neighborhoods in the city. There are thousands of burnt out properties. There are still a huge population of poor people. There are people that think water is a human right and should be free. There are horrible schools in the city. Not all kids can go to Cass Tech.
So yes it is bad when the cops take forever to show up. Yes it is bad when the fire equipment doesn't work properly. Yes it is bad when there are 70 fires a day. Yes it is bad when the city makes a huge deal when a over priced grocery store opens up.
Its also a better investment to be in the burbs. Why would you want to pay higher taxes for a poor city. Why would you want to pay payroll taxes on your earnings just because you live in a crappy city? Why would you want to get killed on car insurance that often times are more than the car note. The properties in the burbs are often times not as old and just in a better area.
I live in Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights. I would live in all those cites way ahead of Detroit.
I have lived/owned in Rochester Hills, Roseville, Grosse Pointe Farms, Lake Orion, Sterling Heights, Detroit, Clinton Twp, and Madison Heights. I've enjoyed my home in Detroit the most, because I actually can see the impact I am having on a whole block or neighborhood. What we are doing matters, our neighbors are just thrilled someone has fixed a property, and because its livable, decent people want to live there. Versus buying in saying Madison Heights, your neighbors treat you as you are coming to destroy their neighborhood.
Really wow seems like the I got the royal treatment at my Roseville property. I took the worst property on the block and now it looks awesome. They watched it like a hawk. They would offer to help me when I needed helps jacking the garage back into shape. They cut my grass, they edged my sidewalk and driveway. Yep they sure were scared I came into the neighborhood.
Look that's great you go be the idealist that's great the world needs those people also.
But to deny that Detroit neighborhoods do not have huge problems is not speaking the truth. Please don't compare Madison Heights to Detroit. How many people have been killed in MH?
Madison High is open enrollment. Yes I am against open enrollment. Can't blame people for being nervous that when Detroiters start moving in that crime will follow. And if you look at the facts they are justified in that way of thinking. Sorry but hey its the truth.
None of my properties have ever had a problem in the burbs
Wow, these comments are amazing. Detroit may not be the best place in america to live or invest but this is coming from someone who actually does LIVE in the city and know several others that do as well. It's not as bad as you all are making it seem.
well 2013 was the murder capital of the country AGAIN. There are very few good neighborhoods in the city. There are thousands of burnt out properties. There are still a huge population of poor people. There are people that think water is a human right and should be free. There are horrible schools in the city. Not all kids can go to Cass Tech.
So yes it is bad when the cops take forever to show up. Yes it is bad when the fire equipment doesn't work properly. Yes it is bad when there are 70 fires a day. Yes it is bad when the city makes a huge deal when a over priced grocery store opens up.
Its also a better investment to be in the burbs. Why would you want to pay higher taxes for a poor city. Why would you want to pay payroll taxes on your earnings just because you live in a crappy city? Why would you want to get killed on car insurance that often times are more than the car note. The properties in the burbs are often times not as old and just in a better area.
I live in Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights. I would live in all those cites way ahead of Detroit.
I have lived/owned in Rochester Hills, Roseville, Grosse Pointe Farms, Lake Orion, Sterling Heights, Detroit, Clinton Twp, and Madison Heights. I've enjoyed my home in Detroit the most, because I actually can see the impact I am having on a whole block or neighborhood. What we are doing matters, our neighbors are just thrilled someone has fixed a property, and because its livable, decent people want to live there. Versus buying in saying Madison Heights, your neighbors treat you as you are coming to destroy their neighborhood.
Really wow seems like the I got the royal treatment at my Roseville property. I took the worst property on the block and now it looks awesome. They watched it like a hawk. They would offer to help me when I needed helps jacking the garage back into shape. They cut my grass, they edged my sidewalk and driveway. Yep they sure were scared I came into the neighborhood.
Look that's great you go be the idealist that's great the world needs those people also.
But to deny that Detroit neighborhoods do not have huge problems is not speaking the truth. Please don't compare Madison Heights to Detroit. How many people have been killed in MH?
Madison High is open enrollment. Yes I am against open enrollment. Can't blame people for being nervous that when Detroiters start moving in that crime will follow. And if you look at the facts they are justified in that way of thinking. Sorry but hey its the truth.
None of my properties have ever had a problem in the burbs
My Property in Detroit has never had any issues, but I have a rental in Madison Heights the air conditioner was stolen. Someone broke into my tenants garage in Roseville, my place in SH its hot water heater was damaged because someone attempted to steal and it tore up a bunch of plumbing in the utility room.
Detroit, has its issues on a grand scale but my property has no issues. If you saw my previous posts in this thread I stated whats the formula for success in a Detroit property. The formula is different area to area. Fine, I understand you want to rag on Detroit. But I have rentals in Clinton Twp, GP Farms, Detroit, Madison Heights, Roseville, Sterling Heights, and the Detroit Rentals make the most money BY FAR, and they are the least problem in terms of tenants. Madison Heights, schools are a just as bad as Detroit if you look at the test scores, so Madison Heights is just a working class, starter home community. If anyone makes any money they move out. My Wife and I moved to Madison Heights in Fall 2009 from "Detroit". We were the youngest people(25) on our whole block. Our neighbors had a near heart attack. Fast forward 5 years later we have moved they are still there, and we own the house as a rental.
The neighborhoods you said were nice "Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights". Are all places I would never live in at this point of my life because they are not nice areas and I would never want to raise my family there or have my kids go to school there. But then again I've only lived in Rochester Hills(child-teenager), Lake Orion(young adult), Detroit(college), Grosse Pointe(late 20s-early 30s), and Madison Heights(mid-20).
Wow, these comments are amazing. Detroit may not be the best place in america to live or invest but this is coming from someone who actually does LIVE in the city and know several others that do as well. It's not as bad as you all are making it seem.
well 2013 was the murder capital of the country AGAIN. There are very few good neighborhoods in the city. There are thousands of burnt out properties. There are still a huge population of poor people. There are people that think water is a human right and should be free. There are horrible schools in the city. Not all kids can go to Cass Tech.
So yes it is bad when the cops take forever to show up. Yes it is bad when the fire equipment doesn't work properly. Yes it is bad when there are 70 fires a day. Yes it is bad when the city makes a huge deal when a over priced grocery store opens up.
Its also a better investment to be in the burbs. Why would you want to pay higher taxes for a poor city. Why would you want to pay payroll taxes on your earnings just because you live in a crappy city? Why would you want to get killed on car insurance that often times are more than the car note. The properties in the burbs are often times not as old and just in a better area.
I live in Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights. I would live in all those cites way ahead of Detroit.
I have lived/owned in Rochester Hills, Roseville, Grosse Pointe Farms, Lake Orion, Sterling Heights, Detroit, Clinton Twp, and Madison Heights. I've enjoyed my home in Detroit the most, because I actually can see the impact I am having on a whole block or neighborhood. What we are doing matters, our neighbors are just thrilled someone has fixed a property, and because its livable, decent people want to live there. Versus buying in saying Madison Heights, your neighbors treat you as you are coming to destroy their neighborhood.
Really wow seems like the I got the royal treatment at my Roseville property. I took the worst property on the block and now it looks awesome. They watched it like a hawk. They would offer to help me when I needed helps jacking the garage back into shape. They cut my grass, they edged my sidewalk and driveway. Yep they sure were scared I came into the neighborhood.
Look that's great you go be the idealist that's great the world needs those people also.
But to deny that Detroit neighborhoods do not have huge problems is not speaking the truth. Please don't compare Madison Heights to Detroit. How many people have been killed in MH?
Madison High is open enrollment. Yes I am against open enrollment. Can't blame people for being nervous that when Detroiters start moving in that crime will follow. And if you look at the facts they are justified in that way of thinking. Sorry but hey its the truth.
None of my properties have ever had a problem in the burbs
My Property in Detroit has never had any issues, but I have a rental in Madison Heights the air conditioner was stolen. Someone broke into my tenants garage in Roseville, my place in SH its hot water heater was damaged because someone attempted to steal and it tore up a bunch of plumbing in the utility room.
Detroit, has its issues on a grand scale but my property has no issues. If you saw my previous posts in this thread I stated whats the formula for success in a Detroit property. The formula is different area to area. Fine, I understand you want to rag on Detroit. But I have rentals in Clinton Twp, GP Farms, Detroit, Madison Heights, Roseville, Sterling Heights, and the Detroit Rentals make the most money BY FAR, and they are the least problem in terms of tenants. Madison Heights, schools are a just as bad as Detroit if you look at the test scores, so Madison Heights is just a working class, starter home community. If anyone makes any money they move out. My Wife and I moved to Madison Heights in Fall 2009 from "Detroit". We were the youngest people(25) on our whole block. Our neighbors had a near heart attack. Fast forward 5 years later we have moved they are still there, and we own the house as a rental.
The neighborhoods you said were nice "Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights". Are all places I would never live in at this point of my life because they are not nice areas and I would never want to raise my family there or have my kids go to school there. But then again I've only lived in Rochester Hills(child-teenager), Lake Orion(young adult), Detroit(college), Grosse Pointe(late 20s-early 30s), and Madison Heights(mid-20).
All good points. I have no children and none are coming. So the schools don't mean as much to me. You love Detroit that's great. What Street did you live on in MH?
I love the downtown area of Detroit. I am 47 yrs old. So I had to grow up with downtown Detroit being a complete dump. I would love to be young and have a good downtown.
Don't act like I don't know about Detroit. I have been everywhere in that city. I have worked in the neighborhoods. The "feeling" you got from your neighbors is the same "feeling" I got from the people in the neighborhoods. I have been shot at multiple times. Almost carjacked atleast 3 times. Found dead people all this happened in the city you love. Well there is only so much a man can take. So yes I do rip on the city.
And yes Madison High School is terrible. It makes me sick to see what has become of that school. I went there and got out in 86. So yes I am very pissed about the way it has gone to hell.
You sound bitter to me. You took it personal when I said I would not live in 99% of the neighborhoods in Detroit. Now maybe you can understand where I am coming from.
I have never found dead people in the other cities. I have never been carjacked in the other cities. I have never been shot at in the other cities. I never had that "feeling" in the other cities.
That's alright there are plenty of properties for all of us. Come to our local meet up this month and I'll buy the first one.
Wow, these comments are amazing. Detroit may not be the best place in america to live or invest but this is coming from someone who actually does LIVE in the city and know several others that do as well. It's not as bad as you all are making it seem.
well 2013 was the murder capital of the country AGAIN. There are very few good neighborhoods in the city. There are thousands of burnt out properties. There are still a huge population of poor people. There are people that think water is a human right and should be free. There are horrible schools in the city. Not all kids can go to Cass Tech.
So yes it is bad when the cops take forever to show up. Yes it is bad when the fire equipment doesn't work properly. Yes it is bad when there are 70 fires a day. Yes it is bad when the city makes a huge deal when a over priced grocery store opens up.
Its also a better investment to be in the burbs. Why would you want to pay higher taxes for a poor city. Why would you want to pay payroll taxes on your earnings just because you live in a crappy city? Why would you want to get killed on car insurance that often times are more than the car note. The properties in the burbs are often times not as old and just in a better area.
I live in Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights. I would live in all those cites way ahead of Detroit.
I have lived/owned in Rochester Hills, Roseville, Grosse Pointe Farms, Lake Orion, Sterling Heights, Detroit, Clinton Twp, and Madison Heights. I've enjoyed my home in Detroit the most, because I actually can see the impact I am having on a whole block or neighborhood. What we are doing matters, our neighbors are just thrilled someone has fixed a property, and because its livable, decent people want to live there. Versus buying in saying Madison Heights, your neighbors treat you as you are coming to destroy their neighborhood.
Really wow seems like the I got the royal treatment at my Roseville property. I took the worst property on the block and now it looks awesome. They watched it like a hawk. They would offer to help me when I needed helps jacking the garage back into shape. They cut my grass, they edged my sidewalk and driveway. Yep they sure were scared I came into the neighborhood.
Look that's great you go be the idealist that's great the world needs those people also.
But to deny that Detroit neighborhoods do not have huge problems is not speaking the truth. Please don't compare Madison Heights to Detroit. How many people have been killed in MH?
Madison High is open enrollment. Yes I am against open enrollment. Can't blame people for being nervous that when Detroiters start moving in that crime will follow. And if you look at the facts they are justified in that way of thinking. Sorry but hey its the truth.
None of my properties have ever had a problem in the burbs
My Property in Detroit has never had any issues, but I have a rental in Madison Heights the air conditioner was stolen. Someone broke into my tenants garage in Roseville, my place in SH its hot water heater was damaged because someone attempted to steal and it tore up a bunch of plumbing in the utility room.
Detroit, has its issues on a grand scale but my property has no issues. If you saw my previous posts in this thread I stated whats the formula for success in a Detroit property. The formula is different area to area. Fine, I understand you want to rag on Detroit. But I have rentals in Clinton Twp, GP Farms, Detroit, Madison Heights, Roseville, Sterling Heights, and the Detroit Rentals make the most money BY FAR, and they are the least problem in terms of tenants. Madison Heights, schools are a just as bad as Detroit if you look at the test scores, so Madison Heights is just a working class, starter home community. If anyone makes any money they move out. My Wife and I moved to Madison Heights in Fall 2009 from "Detroit". We were the youngest people(25) on our whole block. Our neighbors had a near heart attack. Fast forward 5 years later we have moved they are still there, and we own the house as a rental.
The neighborhoods you said were nice "Lincoln Park on the border of Allen Park and its a great neighborhood. I have lived in Warren, Ferndale, Auburn Hills, Madison Heights". Are all places I would never live in at this point of my life because they are not nice areas and I would never want to raise my family there or have my kids go to school there. But then again I've only lived in Rochester Hills(child-teenager), Lake Orion(young adult), Detroit(college), Grosse Pointe(late 20s-early 30s), and Madison Heights(mid-20).
All good points. I have no children and none are coming. So the schools don't mean as much to me. You love Detroit that's great. What Street did you live on in MH?
I love the downtown area of Detroit. I am 47 yrs old. So I had to grow up with downtown Detroit being a complete dump. I would love to be young and have a good downtown.
Don't act like I don't know about Detroit. I have been everywhere in that city. I have worked in the neighborhoods. The "feeling" you got from your neighbors is the same "feeling" I got from the people in the neighborhoods. I have been shot at multiple times. Almost carjacked atleast 3 times. Found dead people all this happened in the city you love. Well there is only so much a man can take. So yes I do rip on the city.
And yes Madison High School is terrible. It makes me sick to see what has become of that school. I went there and got out in 86. So yes I am very pissed about the way it has gone to hell.
You sound bitter to me. You took it personal when I said I would not live in 99% of the neighborhoods in Detroit. Now maybe you can understand where I am coming from.
I have never found dead people in the other cities. I have never been carjacked in the other cities. I have never been shot at in the other cities. I never had that "feeling" in the other cities.
That's alright there are plenty of properties for all of us. Come to our local meet up this month and I'll buy the first one.
Wow what are the chances you have been held at gunpoint and found dead bodies in Detroit. Somehow I've managed to live there on and off for 20 years and never once have seen a dead body, shooting, carjacked, etc. Neither has my Wife in six years. I call BS.
You should be advocating for Detroit to improve it will help your property values in your "nice" neighborhood of Lincoln Park/Allen Park(which from where I'm from is a near slum). This SE Region of Michigan needs growth and growth are driven by core cities. I rent to 5 people in a triplex in Detroit. Two are graduates from Ivy League Universities with degrees in Architecture and Civil Engineering, and one is an Urban Planner fromTufts University(all from places out of state with no Michigan ties). In the other unit one Teaches Metal Working at CCS and he froms from Florida. People like that came here because they said "Detroit, sounds like something I want to see". They didn't sit in their dorm and say, "Man I can't wait to graduate and move to Berkley, MI". They could have went to any other city but they choose Detroit, and Michigan as a whole. People should be drawn to the Region because of Detroit, lay down roots, establish themselves then move to nicer suburbs. Thats how the REST of the country works instead we have people hear openly bash the City of Detroit, then wonder why their property values are not going up as much as people in Chicagoland, DFW, The Valley, Tri-State Region, or the DC-BMore Metroplex.
Its people with your mindset thats why this region has struggled for 30 going on 40 years. I travel 45 weeks a year across the country for work. Metro Detroit is viewed as place the world has passed by. If you look at data and census tracts there has been ZERO growth in SE Michigan since the late 80s in terms of people so all your neighborhoods are being propped up by people leaving Detroit(rearranging deck chairs). So in other words your neighborhood wouldn't exists without it. Its amazing to see a region that was built on industry and a "can do" attitude its devolved into negativity wins.
hahahahahaha typical Detroiter. Somehow its my fault. Now I am negative for what has happened to me in the hood. Just wow I am a straight shooter. I have worked in the neighborhoods for 20 yrs, I have found 2 dead bodies in HUD properties that I was inspecting. Lets face it people saw me as a target. They knew had money since I was either working or looking for drugs
Its the people of Detroit that have ruined Detroit not me pal. I was being nice and hell even offered to buy you a drink. I extended the olive branch. It was you with the typical liberal elitist attitude. Geez Hey we all need believers, that's great. But where oh where will those people's children go to school in Detroit.
You can keep telling me how awesome Detroit is. The problem is that for most (70%) of the neighborhoods are in shambles.
Midtown and downtown are not the real Detroit. Davison and Dexter and fenkel and greenfield are the real Detroit that needs to somehow be rebuilt. Old worthless properties that need a date with the wrecking ball. Hell they leveled and huge area on the eastside to plant a damn Forest.
I have no reason to lie of what happened to me in the hood. You people in Detroit just never want to see the truth. 2013 murder capital of the country. That's a fact.
BTW I live on Leblanc in Lincoln Park right on the border of Allen Park. Its far from a slum. So you keep that out of it. My wife would never live in a slum. We could live almost anywhere we want and this is just a pit stop.
I have 3 free and clear properties and this is one of them. I want to get out of Wayne County as fast as possible. The Dems keep stealing my money.
Why you feel the need to rip on a city that has very very low crime compared to Detroit. I will never understand you Detroiter's defending what goes on in the inner city. That is why the city is what it is. HAHAHAHAHAHA and you blame people like me.
Isaac, what I said 3 years ago is still true:
"[In Detroit], Buy neighborhoods, not ZIP codes. The best [currently] hot neighborhoods? University District, Green Acres, Rosedale-Grandmont, West (Indian) Village, East English Village, maybe SW Detroit [2017, add Bagley]. But you have to be a hands-on investor to make this work. It's a high-risk long-distance play even if you're Chinese or the Blackstone Group....
"My advice? Look inside a 10-mile radius of where you are." Especially since you're already in one of America's coolest small cities. Columbus, Indiana, is at major risk for climate change, but if you plan for that, you're golden.
Mary Leonard.......Love the climate change comment?
For those that invested in Detroit during the genesis of this thread ~2-3 years ago: how are things going?
Detroit is hot but you must be careful just like you are supposed to be anywhere. A lot of deals that may be QCD's. For rental market if you can stand paying $25,000 for D houses and $45,000 for A rentals then Detroit is a Mecca of these kind of deals. Making it difficult to offer good investments to investors who have their mind made up that you can purchase in Detroit for $10,000 to $20,000. That is true but for rough houses or houses that are not rehabbed. Very competative market if you take your time and get a team there's loads of money to be made in Detroit.
Just wanted to revive an old thread. Anyone that posted a few years ago see the climb since then? Any experiences from the original posters?
Could any Detroiters comment on Inkster suburb? Is it a stable mkt to consider?
Hey @Deangustafson, I am about to start in the REI business. Looking at Detroit due to the high ROI and hot market for REIs. Can you please share what zip codes you are in? I have been told 48224 & 48234 are good....
Also if you can share the PM company name would be great. Thanks
I invest in and live in Detroit. I always suggest people come and see our amazing city in order to feel comfortable about where to invest. It is much better than choosing a zip code. There are many great areas and some areas to avoid in both of the zip codes you mentioned. A trip to town will do wonders for your investment goals. I wish you the best of luck and thanks for investing in our great city! @Julio Novoa