We are coming to Detroit

26 Replies

My business partner @Alex Taub and I will be in Detroit from 3/19-3/21. We will be there to explore the area to see if purchasing a rental in the area makes sense. We would very much appreciate it if someone would be willing to have a cup of coffee with us to discuss the area and possibly doing some business together. We are open to purchasing SFR's and multi family properties, we are not sure what are budget is because we need to see what our money will buy. I appreciate any help any help. Thank you.

Are you coming to invest in Detroit specifically, or in general...as in including the surrounding suburbs?

@Marc Pfleger , 3/19 is the night that Wendy Patton's REIA meets in Troy, MI. There are usually 100 or so investors there. Might not be a bad idea to stop in and get to know some local folks. The main speaker that night is the always entertaining investor/accountant/attorney John Hyre.

http://www.michiganrealestateinvestors.com/

@Joe Villeneuve   we are interested in Detroit and the surrounding suburbs, here in Florida I have been purchasing my rental properties with owner financing and would like to replicate that strategy in the Detroit area. I also want to see what a $5,000.00 house looks like.

Tom N. Thanks, I appreciate the info, we will definitely try to check it out.

@Marc Pfleger  My REIC group meets the Saturday before and after you will be here.  Not sure you can accomplish what you want to accomplish in three days, but you can accomplish a lot.  It you're interested, I can help.

Thank you for the replies so far. I've complied a  list of properties we are potentially interested in seeing but we aren't familiar with the neighborhoods they are in. We were hoping someone might be able to steer us in the right direction with regards to the type of  areas that these homes are located in. Any help or suggestions are greatly appreciated! 

15819 Tacoma Detroit 48205*
2974 Calvert Detroit 48206*
15902 E State Fair Detroit 48205*
18602 Alcoy Detroit 48205*
5937 Newport Detroit 48213*
18631 Sunderland Detroit 48219*
17226 Fenton Detroit 48219*
3749 16th Street Ecorse 48229*
4150 18th Street Ecorse 48229*
25 Salliotte Ecorse 48229*
18252 Ferguson Detroit 48235*
4029 19th Street Ecorse 48229*
3984 14th Street Ecorse 48229*
17615 Patton Detroit 48219*
10045 Balfour Detroit 48224*
11359 Winthrop Detroit 48227*
15718 Fielding Detroit 48223*
11099 Mogul Detroit 48224*
38 Elton Ecorse 48229*
14947 E State Fair Detroit 48205*
11400 Sanford Detroit 48205*
11226 Minden Detroit 48205*
15246 Rochelle Detroit 48205*
15485 Cedargrove Detroit 48205*
15476 Troester Detroit 48205*
15403 Mapleridge Detroit 48205*
15636 Park Grove Detroit 48205*
13651 Park Grove Detroit 48205*
15410 Glenwood Detroit 48205*
13805 Glenwood Detroit 48205*
11270 Kenmoor Detroit 48205*
13347 E State Fair Detroit 48205*
2716 Tuxedo Detroit 48206*
6516 Cadet Detroit 48209*
6687 Sparta Detroit 48210*
5931 Drexel Detroit 48213*
5765 Lakewood Detroit 48213*
19780 Braile Detroit 48219*
18432 Greydale Detroit 48219*
15741 Bentler Detroit 48223*
5080 Alter Detroit 48224*
15840 Evanston Detroit 48224*
15755 Rutherford Detroit 48227*
14870 Appoline Detroit 48227*
11336 Forrer Detroit 48227*
9954 Mansfield Detroit 48227*
14579 Prest Detroit 48227*
11366 Vaughan Detroit 48228*
26 W Woodward Ecorse 48229*
77 W Josephine Detroit 48229*
19418 Mansfield Detroit 48235*
13566 Stoepel Detroit 48238*
4342 Tyler Detroit 48238*
3247 Doris Detroit 48238

Originally posted by @Alex Taub :

Thank you for the replies so far. I've complied a  list of properties we are potentially interested in seeing but we aren't familiar with the neighborhoods they are in. We were hoping someone might be able to steer us in the right direction with regards to the type of  areas that these homes are located in. Any help or suggestions are greatly appreciated! 

15819 Tacoma Detroit 48205*
2974 Calvert Detroit 48206*
15902 E State Fair Detroit 48205*
18602 Alcoy Detroit 48205*
5937 Newport Detroit 48213*
18631 Sunderland Detroit 48219*
17226 Fenton Detroit 48219*
3749 16th Street Ecorse 48229*
4150 18th Street Ecorse 48229*
25 Salliotte Ecorse 48229*
18252 Ferguson Detroit 48235*
4029 19th Street Ecorse 48229*
3984 14th Street Ecorse 48229*
17615 Patton Detroit 48219*
10045 Balfour Detroit 48224*
11359 Winthrop Detroit 48227*
15718 Fielding Detroit 48223*
11099 Mogul Detroit 48224*
38 Elton Ecorse 48229*
14947 E State Fair Detroit 48205*
11400 Sanford Detroit 48205*
11226 Minden Detroit 48205*
15246 Rochelle Detroit 48205*
15485 Cedargrove Detroit 48205*
15476 Troester Detroit 48205*
15403 Mapleridge Detroit 48205*
15636 Park Grove Detroit 48205*
13651 Park Grove Detroit 48205*
15410 Glenwood Detroit 48205*
13805 Glenwood Detroit 48205*
11270 Kenmoor Detroit 48205*
13347 E State Fair Detroit 48205*
2716 Tuxedo Detroit 48206*
6516 Cadet Detroit 48209*
6687 Sparta Detroit 48210*
5931 Drexel Detroit 48213*
5765 Lakewood Detroit 48213*
19780 Braile Detroit 48219*
18432 Greydale Detroit 48219*
15741 Bentler Detroit 48223*
5080 Alter Detroit 48224*
15840 Evanston Detroit 48224*
15755 Rutherford Detroit 48227*
14870 Appoline Detroit 48227*
11336 Forrer Detroit 48227*
9954 Mansfield Detroit 48227*
14579 Prest Detroit 48227*
11366 Vaughan Detroit 48228*
26 W Woodward Ecorse 48229*
77 W Josephine Detroit 48229*
19418 Mansfield Detroit 48235*
13566 Stoepel Detroit 48238*
4342 Tyler Detroit 48238*
3247 Doris Detroit 48238

Oh man  80% of those are in the ghetto hood.  Ecorse is a worthless city.  People are leaving that disaster of a city.

Anything on E State Fair is worthless.  Anything in the 205 is also worthless.  How and why did you come up with this list????????????//////  Why not in the northern suburbs.  Why not in Redford?  Hazel Park, South Warren, Roseville,

Stay away from the ghetto, Inkster, Ecorse, Highland Park.

How much money do you have to invest? 

What is the long term goal?  Flip?  Rent?

You want rentals where people want to live  

For being out of town this is not the way to go.

How many of these properties do you want to buy?

Originally posted by @Alex Taub :

Thank you for the replies so far. I've complied a  list of properties we are potentially interested in seeing but we aren't familiar with the neighborhoods they are in. We were hoping someone might be able to steer us in the right direction with regards to the type of  areas that these homes are located in. Any help or suggestions are greatly appreciated! 

15819 Tacoma Detroit 48205*
2974 Calvert Detroit 48206*
15902 E State Fair Detroit 48205*
18602 Alcoy Detroit 48205*
5937 Newport Detroit 48213*
18631 Sunderland Detroit 48219*
17226 Fenton Detroit 48219*
3749 16th Street Ecorse 48229*
4150 18th Street Ecorse 48229*
25 Salliotte Ecorse 48229*
18252 Ferguson Detroit 48235*
4029 19th Street Ecorse 48229*
3984 14th Street Ecorse 48229*
17615 Patton Detroit 48219*
10045 Balfour Detroit 48224*
11359 Winthrop Detroit 48227*
15718 Fielding Detroit 48223*
11099 Mogul Detroit 48224*
38 Elton Ecorse 48229*
14947 E State Fair Detroit 48205*
11400 Sanford Detroit 48205*
11226 Minden Detroit 48205*
15246 Rochelle Detroit 48205*
15485 Cedargrove Detroit 48205*
15476 Troester Detroit 48205*
15403 Mapleridge Detroit 48205*
15636 Park Grove Detroit 48205*
13651 Park Grove Detroit 48205*
15410 Glenwood Detroit 48205*
13805 Glenwood Detroit 48205*
11270 Kenmoor Detroit 48205*
13347 E State Fair Detroit 48205*
2716 Tuxedo Detroit 48206*
6516 Cadet Detroit 48209*
6687 Sparta Detroit 48210*
5931 Drexel Detroit 48213*
5765 Lakewood Detroit 48213*
19780 Braile Detroit 48219*
18432 Greydale Detroit 48219*
15741 Bentler Detroit 48223*
5080 Alter Detroit 48224*
15840 Evanston Detroit 48224*
15755 Rutherford Detroit 48227*
14870 Appoline Detroit 48227*
11336 Forrer Detroit 48227*
9954 Mansfield Detroit 48227*
14579 Prest Detroit 48227*
11366 Vaughan Detroit 48228*
26 W Woodward Ecorse 48229*
77 W Josephine Detroit 48229*
19418 Mansfield Detroit 48235*
13566 Stoepel Detroit 48238*
4342 Tyler Detroit 48238*
3247 Doris Detroit 48238

 EEyow!!

Make a new list.  What and where did you come up with this list from.  You are going to come here, look at these properties, go back home, and tell people not to invest here...and you'd be wrong.

You just need to invest in a different market.  Redford, Livonia, Inkster, Ypsilanti, Wayne, these are just a few cities that would be light years ahead if you invested there.

11270 Kenmoor Detroit 48205*

HAHAHA I will show you where this one is.  This is 5 houses from where I found the dead guy with 2 to the back of his head at the bottom of the basement stairs.

I was a HUD inspector. So I got to see plenty of dumps

Thank you for the neighborhood info. Ideally we'd like to buy to rent. The amount we are looking to invest isn't set, we are open to see what type of opportunities are available up here. The list was generated from a number of realtors and private seller listings that I compiled. You said about 80% of the listed properties were in bad areas, is there any value in looking into the other 20%? We really appreciate the suggested list of other neighborhoods, I'll do some more research and start compiling a new one based on them. 

@Alex Taub  Not to sound like a pessimist right off the bat, but 90%+ of those addys are in areas I would only drive through with a Stryker brigade. Never mind own IPs there. 

If the property is vacant right now, chances are it's already been stripped. 

So you buy it, fix it up and go find a tenant. If it's not filled within 30 days, it will get stripped again. If not sooner. 

But if you can keep it occupied and pay someone to stay there while finding a $400-$700 tenant, then you can improve your odds to a coin flip %s of not losing the money you invested to pass C of O and/or Section 8 inspections. 

If you haven't already... search the forums for "Detroit", read the first 20-50 threads and you'll see why homes sell for low 5 figures or less. 

Don't want scare you off, but we see these types of posts  on a weekly basis now. 

@Joe Villeneuve  

HAHAHAHA here we go again eh Joe.  I will give them a good tour and I will also show them the burbs.  I will even go west and show them your hood. 

You people are lucky that Joe and I are here to try to save you plenty of money and agony.

These areas are complete bombed out dumps.  These neighborhoods are not making a comeback.  Do not believe anyone who says they are.  They are not.

@Alex Taub  IT would be easier if we had an idea of your buying model and financial goals.  I have a partner that is doing great in Detroit, but you really need to have an idea of the overall market.  Detroit is a checkerboard at best.  In the right area and you have a cash cow...in the wrong and you have a cash pig...and they could be within blocks of each other.

Originally posted by @Alex Taub :

Thank you for the neighborhood info. Ideally we'd like to buy to rent. The amount we are looking to invest isn't set, we are open to see what type of opportunities are available up here. The list was generated from a number of realtors and private seller listings that I compiled. You said about 80% of the listed properties were in bad areas, is there any value in looking into the other 20%? We really appreciate the suggested list of other neighborhoods, I'll do some more research and start compiling a new one based on them. 

Let me tell you.  You would not have a cigar and a smile on your face.  Forget everything you have heard about Detroit from people trying to make money from you.  They are blowing smoke up your arssssse

You can ask me anything.  I will be honest with you.  BTW I don't own anything in Detroit.  But I own just outside the city and they are an easy rent.  My family has properties all in the burbs to the north.  Very few vacancies because I try to buy where people want to live.  I just filled a property in 4 days and had my pick of good qualified people with no eviction, convictions and good credit scores

Originally posted by @Scott K. :
Originally posted by @Alex Taub:

Thank you for the neighborhood info. Ideally we'd like to buy to rent. The amount we are looking to invest isn't set, we are open to see what type of opportunities are available up here. The list was generated from a number of realtors and private seller listings that I compiled. You said about 80% of the listed properties were in bad areas, is there any value in looking into the other 20%? We really appreciate the suggested list of other neighborhoods, I'll do some more research and start compiling a new one based on them. 

Let me tell you.  You would not have a cigar and a smile on your face.  Forget everything you have heard about Detroit from people trying to make money from you.  They are blowing smoke up your arssssse

You can ask me anything.  I will be honest with you.  BTW I don't own anything in Detroit.  But I own just outside the city and they are an easy rent.  My family has properties all in the burbs to the north.  Very few vacancies because I try to buy where people want to live.  I just filled a property in 4 days and had my pick of good qualified people with no eviction, convictions and good credit scores

 Like Scott, I deal with the western burbs...right in the border of Detroit..or just a couple of miles west.  What a difference a mile or less makes.

Even further west, in Ypsi, we just sold a house for $185k.  We bought it for $60k.  We have a list if potential Lease Option tenants (over 20) that we could have sold it to as well.  Now we have to go find them houses.  Oh well.

I will be curious to get some contact in Detroit as well

so those properties are out. Thank you.

I recently purchased a 744 sq ft 3 BR 1 bath wood frame house in a not so nice area with the following the terms:

Purchase price: $37,000.00

down payment: $10,000.00

11% 30 year amortization 

Currently rented to a handyman of mine for $700.00 should be rented for $800.00

We would be looking to do something like that. We do not necessarily have a money constraint if the deal is correct the money is there this trip is primarily to explore the area and make some contacts. We appreciate all the input. Thank you.

Originally posted by @Marc Pfleger :

so those properties are out. Thank you.

I recently purchased a 744 sq ft 3 BR 1 bath wood frame house in a not so nice area with the following the terms:

Purchase price: $37,000.00

down payment: $10,000.00

11% 30 year amortization 

Currently rented to a handyman of mine for $700.00 should be rented for $800.00

We would be looking to do something like that. We do not necessarily have a money constraint if the deal is correct the money is there this trip is primarily to explore the area and make some contacts. We appreciate all the input. Thank you.

$10K down on a $37K property and you're paying 11%.  Ouch.  Who gave you those terms?  You mentioned earlier that you're buying with and looking for seller financing.  That is not a seller financing interest rate. 

Originally posted by @Marc Pfleger :

so those properties are out. Thank you.

I recently purchased a 744 sq ft 3 BR 1 bath wood frame house in a not so nice area with the following the terms:

Purchase price: $37,000.00

down payment: $10,000.00

11% 30 year amortization 

Currently rented to a handyman of mine for $700.00 should be rented for $800.00

We would be looking to do something like that. We do not necessarily have a money constraint if the deal is correct the money is there this trip is primarily to explore the area and make some contacts. We appreciate all the input. Thank you.

wow a 740 sq ft house and it fits 3 bd's?  11% on 27k will eat into your cash flow.  You need to refi that sucker and make more cash flow.

It will be a good trip to be able to get out here and get in the neighborhoods so you never go there again.  lol

Prices have gone up with inventory going down at the moment.  But there is always deals.  Wish I had more money at the moment

We will be purchasing buy and hold properties. We are going to start out with one property and go from there.

@Joe Villeneuve  "Even further west, in Ypsi, we just sold a house for $185k. We bought it for $60k. " - that sounds like a smokin deal congrats! 

I agree the terms are not the greatest on that one but the house is conservatively worth 50k and currently working on getting this sucker refinanced. The deal made sense for me. Every deal is unique and circumstances are different in each one so thats why I really do not want to discuss numbers until I see what is out there. 

My first rental property I was able to purchase the property subject to the existing mortgage so we would be open something like that as well. We have lots of ideas.

Originally posted by @Marc Pfleger :

We will be purchasing buy and hold properties. We are going to start out with one property and go from there.

@Joe Villeneuve  "Even further west, in Ypsi, we just sold a house for $185k. We bought it for $60k. " - that sounds like a smokin deal congrats! 

OK so that helps.  You do not want to buy in Detroit 1 property at a time.  That just will not work at all.  No way to do Detroit in the ghetto one property at a time.

When you get here you will be able to better understand what we are trying to tell you.  It will all be clear.

@Marc Pfleger  

i  read an article that Detroit is going to be a very good area for global warming effects

Maybe a join you there a little

Originally posted by @Marc Pfleger :

so those properties are out. Thank you.

I recently purchased a 744 sq ft 3 BR 1 bath wood frame house in a not so nice area with the following the terms:

Purchase price: $37,000.00

down payment: $10,000.00

11% 30 year amortization 

Currently rented to a handyman of mine for $700.00 should be rented for $800.00

We would be looking to do something like that. We do not necessarily have a money constraint if the deal is correct the money is there this trip is primarily to explore the area and make some contacts. We appreciate all the input. Thank you.

 If that's all you want, then Detroit is for you.  If you want more, and you should if you're coming out to this area, then don't mention Detroit in the same breath with those prices.

Financing $27k at 11% for 30?   Those are hard money numbers...except for the 30 years.  That's over $250/month on just PI.  If you are out of state, renting at 750/month, my quick analysis tells me this:

750        Rent
250        T/I (conservative)
100        P. Manager
257        Mortgage

143/m   Cash Flow...before any cash reserve

If you're happy with that, I've got a bridge that goes over the Detroit River I can sell you.

Sorry, but I'm just shaking my head at this point...and I know @Scott  is too.  With T/I, PM. mortgage (refI) paying you back all the money you spent on the house upfront, you should be making at least $250 - 300 (on a bad day).  Just analyzed two like this that I put offers in on this morning...on my side of town.  Offers were under $50k...and I bet I get at least one by the end of the week (maybe both).

@Joe Villeneuve  I understand that the terms are not the greatest for that one and it was the most recent deal I did and it cash flows around $250 the taxes and insurance are cheap on this one, of course we would like to do better. Please share some numbers of your recent deals so I can begin to get an idea what the market out there is like. Thanks everyone.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here