First time investor looking to hit Detroit.

7 Replies

I have been doing extensive research and studying in the world of buy and hold rentals. I would love to start in Detroit since I'm kind of local (25 minutes west of downtown). However, I'm moving for 2 years in January to St. Louis with my girlfriend while she finishes grad school. Seeing as I'm a new investor should I wait until I come back to buy my first property or with a couple flights back to Detroit for holidays and possibly a few more for emergencies could I manage?

I want to be a fulltime landlord/investor as soon as possible following my return from St. Louis. This would mean permanently leaving my 9-5 job. I would love some words of encouragement. I'm super nervous about it!

Also I'm looking for a local Detroit mentor. This is one of many questions that I have and I would love to be able to bounce a couple off someone with experience.

As you are getting started I would recommend getting started now but maybe get a property manager in the interim. If you wait two years you might not have the same motivation that you have now. Get started now get the experience so when you come back you hit the ground running or just become an out of state investor until you return. Good luck whatever route you take, educate yourself so nothing blindsides you.

@Austin Cooke - now. As in tomorrow morning, get out there and find a place (or places) to buy. You're not leaving until January, that gives you 5 months to accomplish. There are people buying up Detroit, so if you wait 2 years, you will be exactly where you are now but with higher prices. And St. Louis isn't far from Detroit.....unless your gf demands that you're by her side every minute, you can pop back home on occasion. Good luck!

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Originally posted by @Austin Cooke :

I have been doing extensive research and studying in the world of buy and hold rentals. I would love to start in Detroit since I'm kind of local (25 minutes west of downtown). However, I'm moving for 2 years in January to St. Louis with my girlfriend while she finishes grad school. Seeing as I'm a new investor should I wait until I come back to buy my first property or with a couple flights back to Detroit for holidays and possibly a few more for emergencies could I manage?

I want to be a fulltime landlord/investor as soon as possible following my return from St. Louis. This would mean permanently leaving my 9-5 job. I would love some words of encouragement. I'm super nervous about it!

Also I'm looking for a local Detroit mentor. This is one of many questions that I have and I would love to be able to bounce a couple off someone with experience.

Detroit is a great market especially if you’re local. From now until January you can get a lot done. I would recommend a multifamily 4, 8 or 10 unit you can rehab and add value to before your trip to St. Louis. By January you can have a turnkey operation fully occupied and your property manager in place. 

@Austin Cooke Where is your girlfriend finishing her grad school? Just a thought, your two years in STL could be a great learning experience! You could buy a duplex/4plex in STL. Have a PM manage the property. And either sell it when you move or keep it as a long-distance investment. 

This could be good because it would lower your living cost's while in STL for 2 years. Expose you to RE and by the time you get to Detroit, you'll have a wealth of knowledge. Having a PM manage instead of yourself would set yourself up for when you move away and feel comfortable with the management side of things. Plus, you'd get to learn a lot of PM just from forced interaction. That'd be helpful if you decided to manage your own properties in the future.

IDK your financial situation, where you're looking to move to within STL, or anything. But if you are interested in something like that and need contacts and suggested areas hit me up. 

@Austin Cooke @Nathan Dehn  

Nathan said it very nicely. House hacking in STL is a great way to slide into the landlord game to see if you like it. Gently getting your systems in place also has value. Depending on what school she’s going to, the surrounding property may be quite cheap.

If you need a local to talk to or show you around, let me know.

@Kyle Eckert @Nathan Dehn

She is going to SLU. We already signed a one year lease at west end terrace in central west end. I would love to be able to meet up with some locals to learn the area. I know it's very much like Detroit. One street could be a good investment opportunity and just one street over could be a nightmare.

Thank you for the advice. I will be in touch come January