Detroit single family home

18 Replies

I recently acquired a free and clear single family home 3 bedroom 1 bath 950 sqft in the Redford area of Detroit..zillow est $43,000.. The previous owner explained to me that they had renters in the property but since then a water leak in the roof happened from a vent in the kitchen so there is water damage.... also the property is now boarded up and secured..

What would be the first thing you would do?  should I invest money to fix and rent? should I sell now? should I hold for a couple years and wait?

I live in Phoenix Arizona no real estate experience... 

Thank you for all the suggestions 

Do you have an estimate on cost of repairs? Zillow "zestimates" are pretty much useless in Detroit. What did you pay for it? 

If it's empty and boarded up, it's just costing you money, so only real choices are:

1) fix it and rent it

2) sell it

Otherwise the carrying costs are just adding up every month. 

The deed was transferred to me from a business partner as a good gesture..... I have not got an estimate on repairs, I live in Arizona so I have not made it to that area yet.

My plans are to fly out look over the property get a few estimates on repairs.

Do you think I should spend the money to fly out myself and inspect this property or should I just call around to have people give me estimates from out of state?

I'm an OOS investor as well. Old Redford isn't a bad area, but it's not exactly great either, so doubtful it's worth putting a ton of money into it. 

I use property managers for this kinda stuff, so if it were mine, I'd have a PM check it out and bring a contractor or two for work estimates. 

Detroit has it's share of break ins and folks helping themselves to whatever they can sell, so might want to move quick on this. Otherwise, you'll be paying for a new furnace, new copper, etc. 

I can private message you a property manager if you like.

What street is it on? I am very familiar with the area and might be interested (or at least know someone that might be interested) if you were selling. Depending on how bad the roof/water damage is, and if the copper/furnace/water heater have been taken, it might not be worth sinking the money back into it. It really does depend on the block it's on too. The streets over there can drastically change from one to the next. PM me the address and asking price if you are thinking about selling. Keep in mind the taxes and water bills can be surprisingly high over there too. I've seen houses with water bills into the thousands, believe it or not! Best of luck with whatever you decide to do with the property!

Originally posted by @Richard S. :

The property is on Bramell st 

Bramell is Detroit. Not Redford sorry. i know the block fairy well. I am connected with a couple investors tied to the area.Go off your estimates all you want to believe. But as stated before z estimate is pretty much useless . If you dont plan to own more here and have an equipped team and now just fishing for one... It may a very long winter for you.

My suggestion is you dump it wholesale and cut your headaches. I can possibly help you get the right connections if you are considering that route

Originally posted by @Richard S. :

I was hoping for 25k return on this, I may have to go check out the property and see if this is reasonable!

Richard, I would not see anyone paying 25k in your unknown condition. Just being brutally honest. Unless you get it on the MLS in some decent working condition and get it to a clear title.

This is a 35-40k MLS listing turnkey updated homes investment area. assuming you sitting on a 3bdr brick bungalow, with decent windows, decent roof, and a garage you could get that if you put the money in it...

 I would have to say 10-15k is the norm for local cash buyers to pay in your unknown condition. There are plenty to choose from at that price point. 

Originally posted by @Richard S. :

Thanks for the honesty ... how much do rentals in this area go for ?

 10k-15k is about the top that you can expect unless it is in great condition. I don;t believe it would be worth your time and effort to fly out to see it. I may be able to do a drive by and get some outside pictures to see what the outside of the house looks like.

Well.... I have had a few people go over to the property to send me pictures.. its in bad condition.     I am now debating on listing this with a Realtor or just doing my own marketing to find a cash buyer..... Any suggestions? 

sorry I didn't get back to you Richard. I went over this weekend and took some pictures as well. Got caught up in the holiday and didn't send them over to you though. the house is in ok condition(visibly). Not terrible, but not great. The neighborhood is not terrible, but it isn't great as well. I would believe you can get 25-40k depending on the interior condition. Quite honestly I would not list with a realtor. I would market yourself, or find a wholesaler. 

Believe me when I say your situation could be worse. This isn't a war zone. There are even people that like to own rental areas like this. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you