I bought a brick 4 unit building at the Detroit Tax auction last year for nearly nothing. It's basically blight. It's in Mexicantown just west of Livernois near W Vernor. Around Cadet, Military, Infantry, etc.
I'm estimating that it will take around 150k to rehab all 4 units. It would be great if I could get a FHA 203K loan, but they generally don't do these for multifamily investments. Are there other alternatives?
I'm hoping for input from folks in Detroit about how much rent for 3 bedroom 2 story attached brick townhouse units freshly rehabbed In Mexicantown would Rent for. (Each with own front and rear entry and basements) I've looked at zillow and some craigslist, but not quite sure what's comparable, or if people are really getting what they're asking.
Is there much demand in this area of 'Western' Mexicantown, or will it likely sit empty for months?
Is a freshly rehabbed 4 unit building near Vernon and Livernois in Mexicantown worth much? What might something like that appraise for after repairs?\
Thanks for any input from the Detroit pro's around here!
I will suggest you get a realtor friend (one who works in and knows the area), take him to lunch and pick his brains, you will be amazed what you can learn from him/her.
Hi @David Maxam welcome to BP!
I love those buildings! I managed a building in Mexicantown for a bank client of ours a couple of years ago on a foreclosure they had. I believe it was an 8 unit at the SE corner of W Grand Blvd and Howard, on the other side of Mexicantown from you. At that time I was shocked at the rents they were getting; $750 (2 bdrm) - $1,000 (3 bdrm) and they were anything but freshly rehabbed. There were all sorts of issues on that property, I don't think the units had been repainted for 40 years, but the tenants paid like clockwork.
I'm sure they let that thing go for a song. Sure like to have it now. It was located right on the boulevard and looked great from the outside.
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