Detroit Multi-unit Investment (Absolute rookie!)
Hello, BP! I'm a total newbie to the forums, but a friend who has built his multi-property income stream on these resources' advice turned me on to this space. I'd love to get your perspective on the scenario I'm currently facing:
I currently live in SF but have traveled between SF and Toronto every few months for years—my family is there, and as my father ages, I've been feeling compelled to be much closer to home. My primary residence for the past six years has been a small but charming condo in a converted historical mansion in Glen Park, a desirable part of the city. I've decided to turn my primary residence into an investment property. My costs for this space (mortgage+hoa dues+insurance+taxes) is ~$2800, the property management agency I've signed will take 8%, and their rental pricing report estimates a low-end rental rate of $3100, high of $3300. I want to hold this property as SF to ride out appreciation for future sale, or keep as a pied-à-terre for my future self—so even keeping my costs neutral to hold the asset here seems reasonable. So question one would be, *is* this reasonable?
The second question is about Detroit. I want to be within driving distance of Toronto, and have Detroit in my sights as my next home. I love everything that I've heard about that city, how it's community-driven, and revitalizing itself on its terms (i.e., trying to remain Detroit instead of becoming a Brooklyn). But in researching the city from SF, it's been tough to get a real sense of where the livable/walkable parts of the city might be, where the creative hubs are, where a walkable life is most likely. The cost to rent versus the cost to own is negligible. I would always prefer to build equity when I can; my friend mentioned above suggested that I find a multi-unit and live in one of the units for relatively cheap or free. The multi-unit homes I see all need some amount of work, so I wonder how easy it is for a new member of the city to find reliable handy-folk, painters, etc. to help (this is a big challenge in the Bay Area). I wonder if there are property maintenance companies in the Detroit area that I could hire to respond to any needs my tenants may have (looking for recommendations) — this would be my first multi-unit investment. I would live in it, but the biggest hurdle to taking this leap is finding a team on the ground that I can trust (and I trust the BP forums!).
I'm interested in getting closer to home, and I know that Detroit is a car city. Still, I'm looking for parts of the city that might fit the 15-minute city bill. I'd to hear locals weigh in on where a newcomer can join the community as a contributor (i.e., I'm not just in it to flip, I get joy out of participating in & improving my city). Is it safe or scary to live near hospitals, or surrounded by parking lots, or right by the water? Is there a difference in the midtown area to being on the east vs. west side of Woodward?
Of course, I also have many questions about what I probably *don't* know about converting my primary residence into an investment, and about how to practically navigate buying a property in Detroit while still in SF, and about what I do with my mail during the in-between phase, etc. etc. Please advise me, BP!