I am interested in buying and holding properties in an area where there is low barrier to entry. While practicing analyzing deals I came across this property . There seems to be an area that there are multiple properties for less than 10 K. After looking at the area school district the last reviews are from 2013. Can anyone who invests in this area share some light as to why no one is taking advantage of the properties in this area?
2465 Elmhurst St, Detroit, MI, 48206 | realtor.com®
Connect with @Bud Ramkissoon . He has 10 doors in Detroit.
Yes I can help connect you with my property manager.
He is great.
Thats great thank you
@Dalila A. there's a reason these properties are so cheap!
The property you posted will need at least $80k in rennovations to be livable, probably over $100k to pass all city inspections.
Did you use Google Maps Street View to virtually drive around the neighborhood? In our opinion it's a Class C area at best.
What research have you done on investing in Class C & D properties and the associated tenant challenges - versus Class A or B?
Feel free to contact us for additional assistance:)
Hello. I lived in Detroit for 15 years and owned close to that area. Those homes appear to offer significant value but only if you are local, have good contractors and are willing to assume the risk of riding out the areas in hope they recover as other investors join in. I am in Toledo know which is 45 minutes away and I would not do it. The rules of flipping have changed in this new era. In the past you could buy cheap and renovate. Now due to labor and material costs and other challenges I recommend spending more and finding a property already rehabbed in a C+ or better area in Detroit.
Hi Dalila, what other areas with low entry barriers are you looking at and what are your price ranges and expected returns? We can chat about Baltimore, MD where you can easily get Cap Rates between 10%-14% for SFR around 100K. Let’s connect!
I'm a local investor in Detroit with 9 door closing on 10 soon but that area is terrible and that building isnt worth investing in. Get yourself an local investor or PM to point you in the right direction. The successful people value their time and we get tons of inquiries from tire kickers so dont feel bad if they vet your seriousness. We get out of state investors that are solid bad properties with promises of huge ARV and bad comps to support them. It's best to join the fb groups for Detroit investors.
Thank you for the insight. I am a new investor and do not even know the difference of a A, B neighborhood or C, D neighborhood. As far as driving by virtually I have not. I will schedule time to do so. Hope you had a wonderful weekend. Stay well.