Looking to invest in Michigan. Any upcoming areas?

Question

I’m looking at buying some rental properties in Michigan. Been looking at Lansing, Jackson and would be interested in Detroit too. But with Detroit I’d need to know which areas would be desirable still giving good value. Any help with this would be greatly appreciated as I’m in Canada and looking to make my first move into the US. Thank you!

Joe Hammel · Answer

Looks like you've done some good Homework, those are great selections. Warren and Redford are both great investor markets. Northern Warren will be closer to your B neighborhoods, but Southern Warren will have lower entry point (closer to C neighborhoods). These 2 markets are my favorite for perfect balance of neighborhood, purchase price, Cash on Cash ROI, and cash flow.

Example: Buy $60-80k, Light cleanup, couple updates, rent $900-$1200. 15% ROI, $300/door cash flow.

Examples can go up or down depending on rehab and buying preferences. Let me know if you want specific property examples and investor analysis reports.

Good Luck!

David McCracken · Answer

Hi Trevor, I'm an investor, realtor, and property manager in the metro Detroit area. The specific area will depend what class of property you want and what your goal is for a return. I can give you some riskier, management intensive areas with a higher CoC ROI, or I can give you class B, more dependable properties with a more conservative return. Could you elaborate a little on your investing goals?

Aaron B. Lewis · Answer

Good sound advice from @David mccracken! Goals drive decisions.

If you havent already research opportunity zones and a Qulaified Opportunity Zone Investment Fund in a booming city for real estate investing,you will likely learn tons from investing through that QOIF.

Trevor Wolski · Answer

Thank you all for your input. I really appreciate it. David, to elaborate, I’d be more interested in the class B properties. I’d like more stability and a bit less risk. I’ve been looking at Macomb county (warren, Eastpointe), as well as Redford. I’ve also been seriously considering Lansing. How are those selections?

Andrew Powers · Answer

In metro detroit, towns directly surrounding royal oak are on the rise. Royal oak is good as well but expensive.

Tyrone L Brewer · Answer

Try looking in Redford, Canton, and Livonia. Or you could ask Greg Scott, he's in the Metro Detroit Area.

Looking to invest in Michigan. Any upcoming areas?

Looking to invest in Michigan. Any upcoming areas?

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