Who thinks Detroit will turn around within the next 5 years?
Detroit, MI · Member since 2014 · 40 posts · 5 votes
Who thinks Detroit will turn around within the next 5 years?
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I have to reject the premise of the question because it asks if "Detroit" will turn around in 5 years. What is "Detroit"?
If you know the city then you know it's the size of Boston, San Francisco and Manhattan combined. It's not one monolithic neighborhood and it never has been.
Some areas clearly have momentum. There are areas where rentals are hard to find, waiting lists abound and landlords with desired properties have increased rents from $1100/mo. to $1500/mo. in one year.
There are other areas that are bad and getting worse. And then there is the urban prarie, the land that was occupied by many of the 2 million people who lived in the city in the 50's, that's now vacant and fallow.
There's not just one story of Detroit, or one future trajectory. Like many cities, Detroit real estate is neighborhood by neighborhood.
We can discuss the city's overall finances, or mass transit, or the local economy and refer to "Detroit" as one entity, but when looking at a "potential turnaround" you better specify the neighborhood or even the cross streets.
130 Replies
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Originally posted by @Jon Klaus:
You realize one of the biggest things to Detroit's demise that no one is mentioning and that also helped your chart decline? Racism and eventually the riots that people thought couldn't happen in Detroit. White's moved out. Blacks were stuck there.
This made thousands of people leave the city. Had nothing to do with jobs, the auto industry, or anything other than race issues. But we must have forgot this issue that started the downfall I guess.
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Originally posted by @Account Closed:
I've never been to Detroit so this is only my opinion based on what I see elsewhere. It's REALLY hard, near impossible, to revitalize areas that become low end rental areas. And if I'm not mistaken that is what's happening in Detroit (city) on a large scale.
When all the buildings around you are thrashed out, and the tenants are low end, are you really going to spend money fixing up the house/neighborhood? No, so it will just keep spiraling downward.
Unless there is a massive push back towards middle class owner occupants, it will never improve. They would basically have to start with the best area and then revitalize street by street around it.
This is for certain. It will not be easy if Detroit is to truly be brought back. It can't be done by revitalizing small areas in such a vast city. Essentially as any city, it needs to start at the heart and grow.
Maybe this means breaking up the city into new cities and/or developements. In any case, this will be a HUGE project and will only be successful if the current residents are willing to accept change. Most will not. So how does the city go from there???
This is the true question at hand. People should be talking about 'How' to fix it instead of what people 'think' will happen. Action is needed not opinions.
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Ok, now that everyone is tired of my posts. My last point here is that opinions mean nothing in regards to Detroit. Fact and action is what matters.
Detroit has had years to reach where it's at. But people think it was this sudden mishaps. If the residents and the city officials started caring years ago after the riots then maybe it wouldn't be where it's at today.
But what do I know. I wasn't even alive during the riots so I must not know what I'm talking about.
Keep an open mind everyone. Don't accept the accepted. Create your own path.
Watch 'Detropia' on Netflix. Some people truly do care and refuse to accept the failure of Detroit. Some aren't willing to accept the change. Stupid or not, it shows a bit of the soul of Detroit that most people, including me, do not even know.
- Detroit, MI · Member since 2014 · 40 posts · 5 votes12y
@Aaron Yates finally someone who see's what I see in the city. I can admit that everyone else is right but at the same time you are too! & I'd rather agree with the fact that many people don't know because they are in fact looking/investing in the wrong neighborhoods.
- Detroit, MI · Member since 2014 · 40 posts · 5 votes12y
@Aaron Yates I can say this, I want everyone's insight on our city, mainly the ppl who are actually here. I'm just trying to make since of this all, "dealing with the ppl of the city & why many lack the initiative to make a change". I should be asking for facts that's something you are right about but when it comes to OUR city ppl like you who are actually locals know more about Detroit than any of these other guys because they read articles they aren't actually here!!! I've been weighting these forums to reach out to local Michiganders like yourself for advice/insight to help me better understand & keep my ambitions high! I appreciate the fact that you've commented because it allows me to know that I'm not alone when it comes to caring for where I live & I'd be more than grateful to learn more from you. I know the ends-outs of this city but am a rookie to investing in it.
@Aaron Yates it's apparent that your posts lack one thing; passion! (read facetiously)
While you reject my proposal that a political ideology was the major principle in Detroit's demise, you agree with Rob K. that "the three biggest problems with the city are crime, taxes, and schools. Until you fix those three, there's no hope."
If political ideology affects anything, I think it fair to say, it affects a community's stance on crime, taxes and public education. I agree that the ingredients implicit in Detroit's fall are too numerous to consider and are only hypothesis at best. But, someone or something must be held accountable, and if we do not hold the Leadership of Detroit accountable, whom are pawns in a political ideology, then who is responsible?
One need not be intimate with the inner-workings of Detroit to understand in whole what contributed and lead to this mess; one only needs to look at the City's balance sheet.
While it was a brief visit, I have been to Detroit. Just like I've been to L.A., Spokane, Phoenix, Vegas, Dallas, Houston, Montgomery, Birmingham, Jacksonville, Charleston, Nashville, Knoxville, Lexington, Richmond, NJ, Chicago, Lincoln, Kansas City, Minneapolis and on and on.. And I agree that every city is the same; there's the good and the bad.
I'm sure Detroit has the potential to flourish, but it can't do that at the hands of fools. And thus far, the people of Detroit refuse to elect anyone to the contrary.
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Originally posted by @Ryan R.:
@Aaron Yates it's apparent that your posts lack one thing; passion! (read facetiously)
While you reject my proposal that a political ideology was the major principle in Detroit's demise, you agree with Rob K. that "the three biggest problems with the city are crime, taxes, and schools. Until you fix those three, there's no hope."
If political ideology affects anything, I think it fair to say, it affects a community's stance on crime, taxes and public education. I agree that the ingredients implicit in Detroit's fall are too numerous to consider and are only hypothesis at best. But, someone or something must be held accountable, and if we do not hold the Leadership of Detroit accountable, whom are pawns in a political ideology, then who is responsible?
One need not be intimate with the inner-workings of Detroit to understand in whole what contributed and lead to this mess; one only needs to look at the City's balance sheet.
While it was a brief visit, I have been to Detroit. Just like I've been to L.A., Spokane, Phoenix, Vegas, Dallas, Houston, Montgomery, Birmingham, Jacksonville, Charleston, Nashville, Knoxville, Lexington, Richmond, NJ, Chicago, Lincoln, Kansas City, Minneapolis and on and on.. And I agree that every city is the same; there's the good and the bad.
I'm sure Detroit has the potential to flourish, but it can't do that at the hands of fools. And thus far, the people of Detroit refuse to elect anyone to the contrary.
Ok. So to an extent i can agree with you with how you just explained it. It must be combined with the residents as well though.
The city did finally elect someone who wants to make a difference. Butbwill the other officials allow him to do so is definitely the big question.
In short, many things created this problem and it will take many things to fix it.
- Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes12y
The number one issue with people who are not independently wealthy is that of producing sufficient income to pay all their living expenses.
The number one issue with an area/town/city/county/etc, which does not contain predominately independently wealthy people, is of being comprised predominately of people who have a sufficient income to pay all their living expenses while also providing them with a disposable income.
Income can be produced in various ways the healthiest of which from a city's perspective is by legal employment: by people having a stable well paid job.
Detroit is not different in this regard. Which raises the question: where will all the people required to effectively support the town be employed? Where will they all work? What will they do?
Until the question of where all the people will work is resolved in a very substantial way - all other questions and their answers don't mean very much.
- Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes12y
I think your overall logic is somewhat accurate but the word bigotry explains the phenomenon you describe better than does the word racist. Difference of race was not the primary driving factor spurring the exodus.
Why were black people stuck there while white people moved away?
Originally posted by @Aaron Yates:
Originally posted by @Jon Klaus:
You realize one of the biggest things to Detroit's demise that no one is mentioning and that also helped your chart decline? Racism and eventually the riots that people thought couldn't happen in Detroit. White's moved out. Blacks were stuck there.
This made thousands of people leave the city. Had nothing to do with jobs, the auto industry, or anything other than race issues. But we must have forgot this issue that started the downfall I guess.
- 12yChris ClothierBusiness MemberRental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
Originally posted by @Aaron Yates:
Keep an open mind everyone. Don't accept the accepted. Create your own path.
I have exactly zero experience with Detroit and like most investors I only know what I hear from other real estate investors and read in the news or on sites like this one. I liked this 3-sentence quote from what you said earlier. I think a city itself is too broad for this statement to apply, but then again...don't listen to me, right! It takes people who are passionate and believe for any endeavor to come to fruition. It takes more than slogans, but a city like Detroit, which is identified as an iconic American city from the past, can absolutely come back and be a great city of influence again. It is going to take a change in mindset for both elected officials and residents. It will also take a mindset shift on the part of investors promoting the city and developing properties for sale to out of area investors. A shift in focus to high integrity, realistic returns, attracting experienced investors who understand long-term holds and the risks associated with a re-development of a city that has seen so much negative.
Before anyone says I said companies selling Detroit don't or didn't have integrity or realistic returns, I am not saying that. But there has been a perception, and some of it rooted in reality, that companies have been taking advantage of naive investors. There has been a perception that some opportunists had hurt the reputation of the market. That is true in every city, but it may have just seemed to be more pronounced in Detroit or at least more talked about. So for a city to overcome that, it is going to take some really high-integrity companies and individuals to be transparent and start telling a better story for the city. It is going to take people who are open-minded and don't accept what cannot be done...they are going to be too busy doing what others think is impossible!
Certain areas of Detroit are already "coming back". In 5-10 years the perception of Detroit will be different. There are alot of powerful figures that are actively investing in "rebranding" Detroit and they have a good track record. Now is the time to invest IMO. You really need to know the area though. I'm not talking about investing in some $500 house in the middle of nowhere on the eastside. Corktown, Midtown and Downtown are the hot spots right now and it will grow outward into other neighborhoods. New Center, Mexicantown, Brush Park and other areas are luke warm. Some areas are dead cold. There is alot of rehab going on and alot of new businesses opening in the hot areas. Smart people are investing in Detroit right now. Follow the money. If my money wasn't tied up right now I would be investing in Detroit. I plan to in the next couple years. If anyone wants to partner up message me ;). I live Downtown and work Downtown and really "get" the pulse of this area.
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Originally posted by @Stephen S.:
I think your overall logic is somewhat accurate but the word bigotry explains the phenomenon you describe better than does the word racist. Difference of race was not the primary driving factor spurring the exodus.
Why were black people stuck there while white people moved away?
Originally posted by @Aaron Yates:
Originally posted by @Jon Klaus:
You realize one of the biggest things to Detroit's demise that no one is mentioning and that also helped your chart decline? Racism and eventually the riots that people thought couldn't happen in Detroit. White's moved out. Blacks were stuck there.
This made thousands of people leave the city. Had nothing to do with jobs, the auto industry, or anything other than race issues. But we must have forgot this issue that started the downfall I guess.
The reason I point this out is like your previous comment. Back then it was even harder for a black to get a good job. Whites were able to afford to move and some blacks as well.
Some blacks chose to stay, as they do now because its 'their home'.
I didnt say tgis was the main reason. I was just pointing out one of the many reasons Detroit started the decline.
Originally posted by @David O:
Certain areas of Detroit are already "coming back". In 5-10 years the perception of Detroit will be different. There are alot of powerful figures that are actively investing in "rebranding" Detroit and they have a good track record. Now is the time to invest IMO. You really need to know the area though. I'm not talking about investing in some $500 house in the middle of nowhere on the eastside. Corktown, Midtown and Downtown are the hot spots right now and it will grow outward into other neighborhoods. New Center, Mexicantown, Brush Park and other areas are luke warm. Some areas are dead cold. There is alot of rehab going on and alot of new businesses opening in the hot areas. Smart people are investing in Detroit right now. Follow the money. If my money wasn't tied up right now I would be investing in Detroit. I plan to in the next couple years. If anyone wants to partner up message me ;). I live Downtown and work Downtown and really "get" the pulse of this area.I said Corktown in an earlier post. Its the cheapest way to get into the game. With Cork town being one of the closest hoods to downtown that is not bombed out it will be worth a shot.
Yes smart people are investing but those people are big big big money to think that an average investor could get in on those deals is silly. Those deals never even reach the market. To get into the downtown area you need to get approval from the downtown economic club that holds the cards
Originally posted by @Aaron Yates:
Originally posted by @Scott K.:
Originally posted by @Jerry W.:
I believe Detroit will not turn around anytime soon. I have a brother who has been to Iraq and Afghanistan and he told me the death rate is lower there than in Detroit from violent means. Last I looked it was the highest murder rate per 100,000 in the US. A huge problem is the large number of folks who left or are unemployed. Vacant houses and no money is a recipe for crime, as is desperation.I go to those vacant houses everyday. I drives me crazy when people think Detroit is making a comeback. They have no clue what they are talking about. You can't change the culture of violence. Every house in Detroit gets stripped even when people live there. They have made tools to get the siding off houses in 3 mins. I have seen it myself.
You should quit going to the Eastside. Educate yourself some more and expand your driving.
Just a suggestion.
WTH are you talking about. Its my damn job to go to these houses. They are on my list so I go. Expand my driving????????????// I go to Monroe all the to Holly. I would think that's enough driving.
I don't need anymore education about Detroit. In all of your post you seem to act like only you know whats going on down there.
I find it funny that you think you know more about the neighborhoods than I do. I go there almost everyday. I am in the neighborhoods that people would never go to. So what can I educate myself on.
You know what I educated myself on was getting myself a few guns and now I can defend myself.
I have been shot at 3 times and robbed at gunpoint 1 time. I have been tailed and have gotten guns pulled on me from the scumbags trying to scare the whiteboy.
You are not an expert on Detroit. You say you don't have much cash but you don't need much to get into Detroit so you should be there investing and rehabbing.
Geez in one post you say that its a great investment and the next you say that the people don't care. Well who the hell do you think will be renting your houses. The very same people that don't care.
- Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes12y
My point was that it was primarily an economic decision rather than a race based decision which people made in deciding to move away from Detroit. And I am not suggesting that there is not money to be made in Detroit - of course there is. I made a nice return in Camden NJ for a while.
I'm not trying to talk anybody out of investing in Detroit. But the idea that the decline-line on the chart is going to be anything other than down seems remote to me. No graph line maintains direction without correct. But it is my opinion that the long term trend line for Detroit (let's call it the ten year moving average <g>) will be be continuing lower.
And my reasoning is based on the apparent and likely demographics as I perceive them in regard to Detroit. Detroit's issues are a microcosm of the overall issues in the US as a whole. Distilled down to a single essence: people are insufficiently employed.
Originally posted by @Aaron Yates:
Originally posted by @Stephen S.:
I think your overall logic is somewhat accurate but the word bigotry explains the phenomenon you describe better than does the word racist. Difference of race was not the primary driving factor spurring the exodus.
Why were black people stuck there while white people moved away?
Originally posted by @Aaron Yates:
Originally posted by @Jon Klaus:
You realize one of the biggest things to Detroit's demise that no one is mentioning and that also helped your chart decline? Racism and eventually the riots that people thought couldn't happen in Detroit. White's moved out. Blacks were stuck there.
This made thousands of people leave the city. Had nothing to do with jobs, the auto industry, or anything other than race issues. But we must have forgot this issue that started the downfall I guess.
The reason I point this out is like your previous comment. Back then it was even harder for a black to get a good job. Whites were able to afford to move and some blacks as well.
Some blacks chose to stay, as they do now because its 'their home'.
I didnt say tgis was the main reason. I was just pointing out one of the many reasons Detroit started the decline.
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Originally posted by @Scott K.:
Originally posted by @Aaron Yates:
Originally posted by @Scott K.:
Originally posted by @Jerry W.:
I believe Detroit will not turn around anytime soon. I have a brother who has been to Iraq and Afghanistan and he told me the death rate is lower there than in Detroit from violent means. Last I looked it was the highest murder rate per 100,000 in the US. A huge problem is the large number of folks who left or are unemployed. Vacant houses and no money is a recipe for crime, as is desperation.I go to those vacant houses everyday. I drives me crazy when people think Detroit is making a comeback. They have no clue what they are talking about. You can't change the culture of violence. Every house in Detroit gets stripped even when people live there. They have made tools to get the siding off houses in 3 mins. I have seen it myself.
You should quit going to the Eastside. Educate yourself some more and expand your driving.
Just a suggestion.
WTH are you talking about. Its my damn job to go to these houses. They are on my list so I go. Expand my driving????????????// I go to Monroe all the to Holly. I would think that's enough driving.
I don't need anymore education about Detroit. In all of your post you seem to act like only you know whats going on down there.
I find it funny that you think you know more about the neighborhoods than I do. I go there almost everyday. I am in the neighborhoods that people would never go to. So what can I educate myself on.
You know what I educated myself on was getting myself a few guns and now I can defend myself.
I have been shot at 3 times and robbed at gunpoint 1 time. I have been tailed and have gotten guns pulled on me from the scumbags trying to scare the whiteboy.
You are not an expert on Detroit. You say you don't have much cash but you don't need much to get into Detroit so you should be there investing and rehabbing.
Geez in one post you say that its a great investment and the next you say that the people don't care. Well who the hell do you think will be renting your houses. The very same people that don't care.
No I never said it was a great investment. I never said I was an expert. I simply see that there are people making money there. The places to invest and be safe are more expensive than my current market.
I also stated olin one post that I still dont have enough lnowledge to make the move to the right areas that I could afford.
Not all of Detroit will you be shot at. I also work in Detroit sometimes at the auto plants. I also didnt say you were wrong. I just said expand your driving. Go to East English Village, Rosedale park, sherwood forest.
You wont be shot at there.
Originally posted by @Scott K.:
Originally posted by @David O:
Certain areas of Detroit are already "coming back". In 5-10 years the perception of Detroit will be different. There are alot of powerful figures that are actively investing in "rebranding" Detroit and they have a good track record. Now is the time to invest IMO. You really need to know the area though. I'm not talking about investing in some $500 house in the middle of nowhere on the eastside. Corktown, Midtown and Downtown are the hot spots right now and it will grow outward into other neighborhoods. New Center, Mexicantown, Brush Park and other areas are luke warm. Some areas are dead cold. There is alot of rehab going on and alot of new businesses opening in the hot areas. Smart people are investing in Detroit right now. Follow the money. If my money wasn't tied up right now I would be investing in Detroit. I plan to in the next couple years. If anyone wants to partner up message me ;). I live Downtown and work Downtown and really "get" the pulse of this area.I said Corktown in an earlier post. Its the cheapest way to get into the game. With Cork town being one of the closest hoods to downtown that is not bombed out it will be worth a shot.
Yes smart people are investing but those people are big big big money to think that an average investor could get in on those deals is silly. Those deals never even reach the market. To get into the downtown area you need to get approval from the downtown economic club that holds the cards
Yep, I agree. Corktown right now would be the easiest and cheapest way to get in. I wasn't saying to invest in downtown, as yes I agree, that would be hard. My point is basically that the people investing downtown and midtown have a huge incentive to expand this growth. If Detroit truly "comes back" ( at least Downtown, Corktown, Midtown, Southwest, Brush Park) then they are going to transition from being millionaires to being billionaires. I would not invest in a lot of neighborhoods in Detroit except for a select few. Either way it will be risky, but with risk comes great reward ;)
- Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes12y
Originally posted by @David O:
Originally posted by @Scott K.:
Originally posted by @David O:
Certain areas of Detroit are already "coming back". In 5-10 years the perception of Detroit will be different. There are alot of powerful figures that are actively investing in "rebranding" Detroit and they have a good track record. Now is the time to invest IMO. You really need to know the area though. I'm not talking about investing in some $500 house in the middle of nowhere on the eastside. Corktown, Midtown and Downtown are the hot spots right now and it will grow outward into other neighborhoods. New Center, Mexicantown, Brush Park and other areas are luke warm. Some areas are dead cold. There is alot of rehab going on and alot of new businesses opening in the hot areas. Smart people are investing in Detroit right now. Follow the money. If my money wasn't tied up right now I would be investing in Detroit. I plan to in the next couple years. If anyone wants to partner up message me ;). I live Downtown and work Downtown and really "get" the pulse of this area.I said Corktown in an earlier post. Its the cheapest way to get into the game. With Cork town being one of the closest hoods to downtown that is not bombed out it will be worth a shot.
Yes smart people are investing but those people are big big big money to think that an average investor could get in on those deals is silly. Those deals never even reach the market. To get into the downtown area you need to get approval from the downtown economic club that holds the cards
Yep, I agree. Corktown right now would be the easiest and cheapest way to get in. I wasn't saying to invest in downtown, as yes I agree, that would be hard. My point is basically that the people investing downtown and midtown have a huge incentive to expand this growth. If Detroit truly "comes back" ( at least Downtown, Corktown, Midtown, Southwest, Brush Park) then they are going to transition from being millionaires to being billionaires. I would not invest in a lot of neighborhoods in Detroit except for a select few. Either way it will be risky, but with risk comes great reward ;)
Ahhh... I didnt know Corktown was promising right now. What are the prices there?
Originally posted by @Aaron Yates:
Originally posted by @Scott K.:
Originally posted by @Aaron Yates:
Originally posted by @Scott K.:
Originally posted by @Jerry W.:
I believe Detroit will not turn around anytime soon. I have a brother who has been to Iraq and Afghanistan and he told me the death rate is lower there than in Detroit from violent means. Last I looked it was the highest murder rate per 100,000 in the US. A huge problem is the large number of folks who left or are unemployed. Vacant houses and no money is a recipe for crime, as is desperation.I go to those vacant houses everyday. I drives me crazy when people think Detroit is making a comeback. They have no clue what they are talking about. You can't change the culture of violence. Every house in Detroit gets stripped even when people live there. They have made tools to get the siding off houses in 3 mins. I have seen it myself.
You should quit going to the Eastside. Educate yourself some more and expand your driving.
Just a suggestion.
WTH are you talking about. Its my damn job to go to these houses. They are on my list so I go. Expand my driving????????????// I go to Monroe all the to Holly. I would think that's enough driving.
I don't need anymore education about Detroit. In all of your post you seem to act like only you know whats going on down there.
I find it funny that you think you know more about the neighborhoods than I do. I go there almost everyday. I am in the neighborhoods that people would never go to. So what can I educate myself on.
You know what I educated myself on was getting myself a few guns and now I can defend myself.
I have been shot at 3 times and robbed at gunpoint 1 time. I have been tailed and have gotten guns pulled on me from the scumbags trying to scare the whiteboy.
You are not an expert on Detroit. You say you don't have much cash but you don't need much to get into Detroit so you should be there investing and rehabbing.
Geez in one post you say that its a great investment and the next you say that the people don't care. Well who the hell do you think will be renting your houses. The very same people that don't care.
No I never said it was a great investment. I never said I was an expert. I simply see that there are people making money there. The places to invest and be safe are more expensive than my current market.
I also stated olin one post that I still dont have enough lnowledge to make the move to the right areas that I could afford.
Not all of Detroit will you be shot at. I also work in Detroit sometimes at the auto plants. I also didnt say you were wrong. I just said expand your driving. Go to East English Village, Rosedale park, sherwood forest.
You wont be shot at there.
I understand that not all of Detroit is a hellhole. Let me tell you how this works. I do not get a chance to choose where my properties are. Hud gives my company the list of properties that we are to take care of till they sell. Not like a lot of HUD houses are in Palmer Park.
You driving to the auto plants and me driving into the neighborhoods and getting out of my car in an unsecure area is not even the same thing. Just like my family telling me Detroit isn't bad at all and when they go to Ford Field they never have any problem. I just shake my head at that stupidity and wonder how they can even get dressed in the morning.
Just saw on Zillow only a few houses in Cork town.
Need to be south of 12. You get near motorcity casino its a warzone.
Originally posted by @David O:
Originally posted by @Scott K.:
Originally posted by @David O:
Certain areas of Detroit are already "coming back". In 5-10 years the perception of Detroit will be different. There are alot of powerful figures that are actively investing in "rebranding" Detroit and they have a good track record. Now is the time to invest IMO. You really need to know the area though. I'm not talking about investing in some $500 house in the middle of nowhere on the eastside. Corktown, Midtown and Downtown are the hot spots right now and it will grow outward into other neighborhoods. New Center, Mexicantown, Brush Park and other areas are luke warm. Some areas are dead cold. There is alot of rehab going on and alot of new businesses opening in the hot areas. Smart people are investing in Detroit right now. Follow the money. If my money wasn't tied up right now I would be investing in Detroit. I plan to in the next couple years. If anyone wants to partner up message me ;). I live Downtown and work Downtown and really "get" the pulse of this area.I said Corktown in an earlier post. Its the cheapest way to get into the game. With Cork town being one of the closest hoods to downtown that is not bombed out it will be worth a shot.
Yes smart people are investing but those people are big big big money to think that an average investor could get in on those deals is silly. Those deals never even reach the market. To get into the downtown area you need to get approval from the downtown economic club that holds the cards
Yep, I agree. Corktown right now would be the easiest and cheapest way to get in. I wasn't saying to invest in downtown, as yes I agree, that would be hard. My point is basically that the people investing downtown and midtown have a huge incentive to expand this growth. If Detroit truly "comes back" ( at least Downtown, Corktown, Midtown, Southwest, Brush Park) then they are going to transition from being millionaires to being billionaires. I would not invest in a lot of neighborhoods in Detroit except for a select few. Either way it will be risky, but with risk comes great reward ;)
My perspective is that it's too late to be "getting into" Corktown. 5, 10 or even 20 years too late. Houses in Corktown are going for $100K - $250K, when they come up which isn't very often. It's not a very big area. Prices have been strong and supply has been low for years.
You may be able to find a good deal in Corktown, the same way you can find a good deal in Royal Oak or Troy, by beating the bushes and getting a bit lucky, but Corktown isn't a neighborhood that is just starting to get some traction, making the turn around, getting discovered by gays, hipsters and creatives. It's already there, or more correctly, it was there and now it's getting too pricy.
- Involved In Real Estate · Rochester Hills, MI · Member since 2010 · 812 posts · 178 votes12y
Detroit is already turning around. The rents in downtown have doubled in 5 years, pushing the old business district people to midtown, driving up midtown rents. There is only one listing on the MLS right now for corktown, for 800sq ft 1 br $120,000. Detroit as a whole will need to shrink it's footprint, and it's going to be a long time before the whole city is realistically functioning but large pockets are improving at an exponential rate.
Todays under 40 population is flocking downtown and that trend is going to continue.
The building department and courts still have a long way to go. We're not that far removed from kwame, so we need to give duggan and the state time to sort the morons out after years of corruption
Originally posted by @Aaron Yates:
Originally posted by @David O:
Originally posted by @Scott K.:
Originally posted by @David O:
Certain areas of Detroit are already "coming back". In 5-10 years the perception of Detroit will be different. There are alot of powerful figures that are actively investing in "rebranding" Detroit and they have a good track record. Now is the time to invest IMO. You really need to know the area though. I'm not talking about investing in some $500 house in the middle of nowhere on the eastside. Corktown, Midtown and Downtown are the hot spots right now and it will grow outward into other neighborhoods. New Center, Mexicantown, Brush Park and other areas are luke warm. Some areas are dead cold. There is alot of rehab going on and alot of new businesses opening in the hot areas. Smart people are investing in Detroit right now. Follow the money. If my money wasn't tied up right now I would be investing in Detroit. I plan to in the next couple years. If anyone wants to partner up message me ;). I live Downtown and work Downtown and really "get" the pulse of this area.I said Corktown in an earlier post. Its the cheapest way to get into the game. With Cork town being one of the closest hoods to downtown that is not bombed out it will be worth a shot.
Yes smart people are investing but those people are big big big money to think that an average investor could get in on those deals is silly. Those deals never even reach the market. To get into the downtown area you need to get approval from the downtown economic club that holds the cards
Yep, I agree. Corktown right now would be the easiest and cheapest way to get in. I wasn't saying to invest in downtown, as yes I agree, that would be hard. My point is basically that the people investing downtown and midtown have a huge incentive to expand this growth. If Detroit truly "comes back" ( at least Downtown, Corktown, Midtown, Southwest, Brush Park) then they are going to transition from being millionaires to being billionaires. I would not invest in a lot of neighborhoods in Detroit except for a select few. Either way it will be risky, but with risk comes great reward ;)
Ahhh... I didnt know Corktown was promising right now. What are the prices there?
~100K for the fully rehabbed houses selling on the MLS. There is not much supply, but it is a hot area. I could find a renter to rent in that area super quick.
Originally posted by @Joe Delia:
Detroit is already turning around. The rents in downtown have doubled in 5 years, pushing the old business district people to midtown, driving up midtown rents. There is only one listing on the MLS right now for corktown, for 800sq ft 1 br $120,000. Detroit as a whole will need to shrink it's footprint, and it's going to be a long time before the whole city is realistically functioning but large pockets are improving at an exponential rate.
Todays under 40 population is flocking downtown and that trend is going to continue.
The building department and courts still have a long way to go. We're not that far removed from kwame, so we need to give duggan and the state time to sort the morons out after years of corruption
A perfect example of when people get involved with social engineering. They were paying people to stay downtown instead just letting it happen on its own. Now they priced the very same people that started the comeback down there. I hate the fact that now most of those people have to move.
I think the next area that will make a comeback will be around Motor City casino. In the next 5 years that area should be built up with the new Wings arena going up not that far from there. The problem is where do the poor people move to when that area is back up and boomig
- Involved In Real Estate · Rochester Hills, MI · Member since 2010 · 812 posts · 178 votes12y
Originally posted by @Scott K.:
Originally posted by @Joe Delia:
Detroit is already turning around. The rents in downtown have doubled in 5 years, pushing the old business district people to midtown, driving up midtown rents. There is only one listing on the MLS right now for corktown, for 800sq ft 1 br $120,000. Detroit as a whole will need to shrink it's footprint, and it's going to be a long time before the whole city is realistically functioning but large pockets are improving at an exponential rate.
Todays under 40 population is flocking downtown and that trend is going to continue.
The building department and courts still have a long way to go. We're not that far removed from kwame, so we need to give duggan and the state time to sort the morons out after years of corruption
A perfect example of when people get involved with social engineering. They were paying people to stay downtown instead just letting it happen on its own. Now they priced the very same people that started the comeback down there. I hate the fact that now most of those people have to move.
I think the next area that will make a comeback will be around Motor City casino. In the next 5 years that area should be built up with the new Wings arena going up not that far from there. The problem is where do the poor people move to when that area is back up and boomig
You hate that gilbert offered a carrot to his employees to live around tons of his current investments? They don't have to move, they can just choose to pay more. What else was going to happen when an area "comes back"? You expect rents to stay low because they were there first?
I have a great pulse of the 30 year old demographic, and I'm in the business district all the time due to my wife working for quicken. I understand what is happening and talk to people all the time. Everyone is very optimistic and lots of people in my generation are looking to move downtown.
Can you imagine what brush park is going to look like in ten years? It's going to be amazing.
- Involved In Real Estate · Rochester Hills, MI · Member since 2010 · 812 posts · 178 votes12y
Just to add to this. There is a GREAT demand for housing in downtown. Young Suburbanites are begging me to find them housing downtown. Unfortunately it doesn't exist yet for a reasonable price. What is on the market is extremely expensive. You go from awesome to terrible w/in two streets. It's up to investors to continue to turn these homes as the demand continues to increase. What stands in the way is detroit building department (Disaster) and city services getting back online with reasonable response times. Also, taxes need to get under control, they're ridiculous.
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