Investor · Harper Woods, MI · Member since 2015 · 21 posts · 9 votes
Hi,
I'm a newbie living in the Detroit Metro area (Harper Woods specifically). I want to start to acquire rental properties in and around the area starting in the summer and sooner if possible. I am wondering if there is anyone here who has experience investing in and around Detroit.
I specifically want to know how the experience has been for investors investing in the City of Detroit (as opposed to the surrounding communities) in terms of rentals and flips. Also, does anyone have experience in Saint Clair Shores, Grosse Pointe, Harper Woods, Eastpointe, Roseville, or Warren? (All surrounding communities of Detroit)
How has your investing experience been in the Detroit Metro area?
@Brian Jurvelin I am currently focused on SFHs because that all my limited case and credit will allow at this point. Basically I need to get an after income tax/employment tax/expenses cash flow of $500 a month with just $50,000. At this point I'm not entirely sure how to do it, but I'm hoping to learn enough here to find a path forward on that.
My basic problem right now is a problem of finance. I could easily get 2 or 3 properties with that money if I wanted to borrow some money, but I don't have the credit. I would need to either find a partner who does, find a seller financed deal, or find a private money lender. I'm not exactly sure how I go about doing that other than to get involved here and at local REI meet ups.
My basic problem right now is a problem of finance. I could easily get 2 or 3 properties with that money if I wanted to borrow some money, but I don't have the credit. I would need to either find a partner who does, find a seller financed deal, or find a private money lender. I'm not exactly sure how I go about doing that other than to get involved here and at local REI meet ups.
Stewart. Yes, join your local REIC. No true REI doesn't belong to at least 1. I recommend ours. I know it's in Ann Arbor, but we are a little different in that we strive for education, networking and finding partners...actually, all three go hand in hand. a2reic. com
Canton was great a few years ago. We picked up a couple of SFRs there and have had zero problems renting to great tenants, cash flowing about $400/mo on $100k - $125k (at the time) houses. I haven't looked lately in detail,but appreciation has definitely dented returns in Canton, although there are still deals to be had with enough searching. Livonia is easier to find decent returns in, and has many nice areas.
As someone from SE Michigan just learning about real estate these posts have been very helpful.
One additional question I have is on the small multi-family properties (du/3/4-plex) in the metro detroit area. Namely if they follow the same markets as the SFH's or have there own areas? And how viable they are in comparison to SFH in this area?
When I was looking to buy my residence in 2011, I almost bought a duplex, but it needed quite a bit of work, and I was looking for something that was move in ready. (It was in my $60,000 rice range) I'm pretty sure you could find a good one for between 80-120k that would rent for 700-800 a unit, although I haven't done much research on it myself.