I'm new to Real Estate Investing and I will be investing in Detroit and the surrounding areas. I don't know much about Inkster but I'm looking at Redford, Livonia, Westland, and Detroit right now.
Rob K Just because it's "not as bad" as Detroit, doesn't mean it's good. I grew up in the Detroit area, and I've been through Inkster many times, though I probably wouldn't do it these days except on a dare(not). Drugs, guns, prostitution- All there. Is it the worst possible scenario? No. Would I sink money into a place I knew would get stripped of copper and every other available resource (empty or not)? Not a chance. At best there are some C-/D+ areas.
If you like that area, invest in places like Garden City, Wayne or Westland. Still almost as cheap, but without the danger.
I'm not saying Inkster is a nice place at all. I wouldn't buy a car there and drive it away, much less a house. I'm just saying it's not a "war zone". I said in my first post that it's a ghetto. I consider a war zone to be a place where there are daily shootings. A place like Detroit where you are very likely to be randomly murdered for no reason. There are many cities that I would not buy in. Detroit is at the top of that list. Inkster would be on the list too.
It's only a matter of time before Detroit makes a comeback, and those who are buying houses now are likely going to look like geniuses. I'm not that brave, and since there's no way to tell when this will happen, I'll stay away.
As for areas that are doing well: I have a close family friend who has relatives looking for houses in the Royal Oak and surrounding areas. They have put offers in on a half dozen properties and have been outbid every time. Apparently, this is the hottest market in the world, or something like that. So, I'm not sure what your budget is like, but consider this area if it fits.
Those of you who are thinking about investing in the city should know that there is a city income tax that you will have to pay, in addition to the already sky high property taxes. For me, there are such good deals in class C areas like South Warren that it's not worth risking your life to go into the city and have to deal with all of the problems.
If you are going to invest in the city of Detroit, I would only recommend it if you are a highly experienced investor, scary looking, fully armed, bullet proof vest, and maybe have some bikers working for you as well. I would also suggest having at least a million dollars worth of life insurance if you have any dependants.
For me, I just don't see any upside. My houses in the suburbs are appreciating at a rapid rate.
Keep in mind too that if you are in a risky situation in Detroit, the police are slow to respond. You will need to defend yourself. In the suburbs, the police are fast to show up. If you do have to shoot a bad guy, I would much rather deal with suburban cops and a suburban jury if it came to it.
Chris F., North Warren is still really nice. I live in what you could call middle Warren. Nice neighborhoods and people. Clean, friendly. 11 mile & Hoover area.
Go south of 10 mile and it becomes South Warren. Some areas are good. People still like to live there. Most neighborhoods are kept clean. Crime has increased the past few years due to the Northward shift. Lots of Detroit residents moved into South Warren.
My neighborhood used to bu $150 dollar homes. They are slowly creeping back up to $100K. Some sold as cheap as $31,000. Obviously they needed rehabbed though.