New Member Introductions

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Rayisha B.
  • Texas
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9
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Excited to get Started Investing in Properties in Detroit

Rayisha B.
  • Texas
Posted Sep 11 2019, 07:29

Greetings Everyone!

As of lately, my focus has been on how to buy investment property in areas that will make a difference in under-served communities. I grew up in South Central Los Angeles and wanted to invest there but since the prices are so high, I am not able to start there at this time.

So I have shifted my attention to Detroit, MI. I am looking for advice on investing on out-of-state investment properties.

I am ready to purchase my first house or duplex, then do the BRRR method but am concerned about refinancing to pull funds out to purchase another property under an LLC. Any advice here?

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Wilburt King
  • Investor
  • Detroit, MI
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Wilburt King
  • Investor
  • Detroit, MI
Replied Sep 11 2019, 08:52

@Rayisha B.

Welcome to BP. Investing in Detroit has its unique challenges, find a reputable local PM first and foremost.

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Rayisha B.
  • Texas
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Rayisha B.
  • Texas
Replied Sep 11 2019, 11:23

@Wilburt King Thank you Wilburt. I am working on that now. 

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Leroy K. Williams
  • Property Manager
  • Southfield Mi
43
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33
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Leroy K. Williams
  • Property Manager
  • Southfield Mi
Replied Sep 11 2019, 14:12

Hi Rayisha,  

First Thank You for considering our great city for your investment goals. Detroit is really interesting right now since there is a ton of activity in certain areas of the City namely Downtown, midtown, Liv/6 district, historic neighborhoods, the villages, et al. In these areas things are really hot, however in other core neighborhoods things are relatively static as far as values. I am not sure how well the BRRR strategy will work where values are not really that high and lenders are not likely to look favorably on. So with that said when you get here look carefully at the areas and how they are trending before you buy.

In my view the best strategy for tenanting properties in Detroit is buy and rehab first and then hire a property management company. There is a real science as to why but that's an entirely different topic that is tangential to your post so I will leave it at that.

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Rayisha B.
  • Texas
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Rayisha B.
  • Texas
Replied Sep 11 2019, 17:19

@Leroy K. Williams Thank you so much for your feedback!

I definitely want to buy and hold and look for reputable Property Management. Any suggestions there? 

Do you have any advice on purchasing property through LLC?

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Matthew Paul
  • Severna Park, MD
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Matthew Paul
  • Severna Park, MD
Replied Sep 11 2019, 17:42

Its time to take a vacation in Detroit for a week , go see it in person before you spend a dime . 

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Rayisha B.
  • Texas
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Rayisha B.
  • Texas
Replied Sep 12 2019, 09:17

@Matthew Paul You are right! I am actually working on going for a few days before the end of this month. Thanks!

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Jamiel Strickland
  • Rental Property Investor
  • Detroit, MI
229
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366
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Jamiel Strickland
  • Rental Property Investor
  • Detroit, MI
Replied Sep 14 2019, 07:27

@Rayisha B.,

Hey! You are shifting your attention to the cash flow city lol. I think its good to focus here I have my own rentals and I enjoy buying and holding here. Detroit is more of a city that you have to learn the culture and areas street by street. I help people all the time with any questions feel free to ask me anything.

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Rayisha B.
  • Texas
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Rayisha B.
  • Texas
Replied Sep 14 2019, 08:02

@Jamiel Strickland Thank you for responding!

Yes, cash flow is the goal as well as contributing to the come up of an underserved city. I am looking for my first property to be a duplex for sure. Still trying to figure out the best way to purchase and which area.

First I am planning a trip there in the coming weeks to meet with key people and check out the areas. Perhaps we can meet at that time. Do you have any further advice at the top of your advice list?

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Marisa R.
  • Developer
  • Atlanta and Detroit
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Marisa R.
  • Developer
  • Atlanta and Detroit
Replied Sep 15 2019, 04:42
Originally posted by @Jamiel Strickland:

@Rayisha B.,

Hey! You are shifting your attention to the cash flow city lol. I think its good to focus here I have my own rentals and I enjoy buying and holding here. Detroit is more of a city that you have to learn the culture and areas street by street. I help people all the time with any questions feel free to ask me anything.

Yes, agree money to be made sm loving the cashflow and now we are seeing markets rising 

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Rayisha B.
  • Texas
4
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Rayisha B.
  • Texas
Replied Sep 15 2019, 07:28

@Marisa R. Thanks for your input! Do you reside in Detroit as well or are you investing out of state like I would be?

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Marisa R.
  • Developer
  • Atlanta and Detroit
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601
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Marisa R.
  • Developer
  • Atlanta and Detroit
Replied Sep 15 2019, 18:41
Originally posted by @Rayisha B.:

@Marisa R. Thanks for your input! Do you reside in Detroit as well or are you investing out of state like I would be?

Out of State, why imperstive to have the right team 

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Jason Theus
  • Contractor
  • Salt Lake City, UT
4
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31
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Jason Theus
  • Contractor
  • Salt Lake City, UT
Replied Oct 10 2019, 08:50

How can I get started in this type of investing?