Out of State Investors Detroit

[Misha Taylor]

Are there any OUT OF STATE Detroit investors? Detroit is obviously notorious for low cost, low risk, good rental income cash flow but for managing properties, managing fix and flips, how do you manage it all from out of state? 

Has any out of state investor bought site unseen? How often do you travel (or have to travel) to Detroit to manage your properties? 

[Leo Furest]

Hi @Misha Taylor:

I really like all Detroit related posts!

I am an out of the country investor, and Detroit is my second market doing it remotely (after starting many years ago in south Florida that now is still hot market). I have traveled to Detroit in the last two years more than ever destination in my life (I must take 2 flights, 7 hr and 3 hr duration each EVERY MONTH). You have to be involved in the market, you MUST develop a local team (reliable and trustworthy) and the only way to doing that is investing, investing and investing. Network is key. Go to meetings, visit the neighborhoods, talk to people, ask for references, etc etc etc. I agree with many of the other members of BP in this post, Detroit is not an easy market, still many pockets in the city, poverty zones, local Detroiters codes that must be attended, but at the end of the day is a powerful and big American city that is coming back (see GPD/Capita increase, unemployment rate decrease -still high for U.S. 9% in comparison with a national average of 3.9%-, an improvement in the family household income) that can make SOME investment thesis work properly. 

I have purchased 50+ properties in the last year (SFR), rehabbed them (rehab duration 10-15 days) and rented (takes no more than 2 weeks). I am expanding the business this 2019 and like @Marisa R. said you must have people on the ground being the guardians of every penny. In my personal case there is No vacancy, no late payments, no evictions (so far, evictions will appear for sure). Key here is focusing on neighborhoods that are coming back and have a relation homeowner/tenant 40%/60% (sometimes more). I have also established some criteria to my realtors and property managers in terms of areas to focus, type of tenant desired, etc. 

I recommend a post created by @Rebekah Keller (https://www.biggerpockets.com/forums/697/topics/48...) where you can also find very interesting tips on those market challenges.

Enjoy the ride and let us know how your Detroit adventure goes!