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.
Thank you for your feedback. Stay well.
Thank you for the feedback. Stay well.
I think what you will find is that while these areas can provide some great opportunities in cash flow. You will also learn that they can be very time-intensive and heavy on maintenance and operational duties
It's not that these are deals that don't work, it's that these are deals that require a certain type of business model if you are looking for a type of hands off passive income these are not those types of properties
typically these are properties that require a lot of work a lot of effort and when it's all said and done only works in massive volume that you have Crews running and doing all the work or you have to be involved
To me this is not a passive form of income this is a job, nothing wrong with having a job but make sure you clearly identify and understand what you're doing
@Dalila A. Let us know what your trying to do so we can better assist you
I appreciate your feedback. I am just getting familiar with these types of investments. I see the actual cost of the property is very low. However, the rehab cost is high. I appreciate you taking time from your schedule to respond. Stay well. ;)
I am interested in purchasing buy and hold properties. Looking in Detroit due to low cost of properties. Thank you for taking the time to reach out. Stay well. ;)