How do we feel about Detroit, MI

Question

Hi everyone, I’m pretty new to bigger pockets. I have a few long distance properties and I’m looking to expand to other more affordable markets for buy and hold and BRRRR. I’m in the process of researching and was curious how everyone feels about Detroit. I expect the bankruptcy filed has cleared the way for a clean slate and have heard the city is coming back and may be in the early stages of bouncing back. Am I crazy for even asking or looking into it or am I on the right path. Just curious what everyone’s thoughts on this are.

Thanks.

Eric Luzier · Answer

@Alex Velazquez

I highly reccomend listening to episode 331 of BP, if you haven't already. Ashley discusses how she found success in the Detroit market. Definitely one of my favorite recent episodes. Good luck to you!

Alex Velazquez · Answer

@Matthew Reichert Hey Matthew, I’m open to it. I’ll send you request so we can connect.

Alex Velazquez · Answer

@Eric Luzier thanks Eric. I checked it out, very helpful. Sounds like there are a few heavy hitters investing in the city right now and Ashly actually touched on that a bit. Good rehab incentives too from the city.

David M Prevo · Answer

One option for getting your feet wet in Detroit is tying in with a turnkey provider. They clear the way with the upfront stuff of title etc. Yes you’re buying “retail” but the houses are redone and no legwork with finding a wholesale house and the time with clearing title etc. a good way to forge into a market you don’t know / live in.

Art Perkitny · Answer

@Alex Velazquez

Detroit is very block by block. Some areas have seen property value increase, others not so much.

I would suggest digging into specific neighborhoods to understand whether or not there is opportunity present.

To give you an idea of just how block by block it really is, I have included a map showing the change in property values at the block group level from 2014 to 2018 in Detroit.

Blue means increase, red decrease.

The data is from the census american community survey

Alex Velazquez · Answer

@Amber Gonion I saw this too. It makes me nervous. I may focus on more stable markets but I feel there may be some good opportunities in Detroit right now, I’m just not sure it’s worth pursuing. I find info everyday making arguments from both sides. Thanks Amber.

Matthew Reichert · Answer

Hey Alex, I'm also looking at Detroit. Maybe we could put our heads together.

Alex Velazquez · Answer

@Art Perkitny thanks Art this is awesome.

Alex Velazquez · Answer

@David M Prevo thanks David. I haven’t spent much time on turnkey options. I’ll look into it.

Alex Velazquez · Answer

@Constancia Russell thanks Constancia. I’m early in the process and have been discussing with a few contact that live in the suburbs there. Any recent interest to return to that market or specific issues I should look out for.

How do we feel about Detroit, MI

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