Real Estate Investor · Miami Gardens, FL · Member since 2014 · 9 posts · 4 votes
I have a question about investing in Detroit. First, I want to say I am new to investing, and I do not plan on investing in Detroit. I plan on concentrating on my local market. However, with Dan Gilbert making huge investments in the downtown area (Quicken Loans jobs),and other manufacturing jobs coming to that area, would it be wise for someone with experience investing out of state to start looking into getting into that market before home prices increase? (This is assuming the investor has good knowledge of the local market as well as some local agents or investors that could give them some additional input.)
I ask this question because I am interested in anything real estate. Anything I learn I may be able to apply allot some point, some place.
Wholesaler · Commerce Township, MI · Member since 2015 · 11 posts · 8 votes
11y
I understand what your saying but I would rather buy 4 properties for 30k in Detroit and collect $3000 than one for the same 30k outside of Detroit to collect $800. Any tenant anywhere can trash any property.
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
11y
What new manufacturing jobs???????????????
What is your price range??????????
Have you ever been here???????????/
Do you want to come visit???????????
Why do people always talk about downtown? You will never have the access to those properties. There are area's that are good for flips. I would flip in the city and buy and hold in the burbs.
Why do people always talk about downtown? You will never have the access to those properties. There are area's that are good for flips. I would flip in the city and buy and hold in the burbs.
I was also very interested in downtown Detroit, I don't think there will be much manufacturing jobs except for very small boutique shops like the custom bicycles and expensive watches company. Very small scale stuff but cool.. The main drag is I think, big services companies and the hipsters/artists wanting to live and work in downtown. It's getting hot and will get hotter, this kind of people can completely transform whole neighbourhoods.
I heard in downtown only big shots will be able to buy industrial buildings and convert into residential. There isn't much residential stock.
There is some condos/lofts being refurbished for who likes to invest in condos.
I wonder if there would be opportunity in areas like corktown or around midtown.
Wholesaler · Commerce Township, MI · Member since 2015 · 11 posts · 8 votes
11y
I'm not sure if flipping is the way to go in Detroit since the property values are still too low and it is difficult for someone to get approved to buy. Selling on a L/C or renting could be good options. I recently picked up a short sale for 6k and another for 10k. They are both good houses in good areas (not great areas) that need under 3k in repairs and rent for $750 each. Detroit could be a difficult task for an investor that isn't local. There are plenty of locals that still think Detroit is a place to stay away from.
I'm not sure if flipping is the way to go in Detroit since the property values are still too low and it is difficult for someone to get approved to buy. Selling on a L/C or renting could be good options. I recently picked up a short sale for 6k and another for 10k. They are both good houses in good areas (not great areas) that need under 3k in repairs and rent for $750 each. Detroit could be a difficult task for an investor that isn't local. There are plenty of locals that still think Detroit is a place to stay away from.
well for rentalsI am one of them that is not a fan of Detroit. I just don't see the need to deal with Detroit in that way.
You can still get properties in the burbs for 30k or so and rent for 800 without the hassles of the city.
Just think one real bad tenant not paying and completely trashing your property wipes out years of profit. No thanks
Wholesaler · Commerce Township, MI · Member since 2015 · 11 posts · 8 votes
11y
I understand what your saying but I would rather buy 4 properties for 30k in Detroit and collect $3000 than one for the same 30k outside of Detroit to collect $800. Any tenant anywhere can trash any property.
I understand what your saying but I would rather buy 4 properties for 30k in Detroit and collect $3000 than one for the same 30k outside of Detroit to collect $800. Any tenant anywhere can trash any property.
hmmmmmmm 30k invested for 3k in rents. Prove it. What area's are these in? Are you telling me you think long term those properties will always return at that rate. Now way.
4 properties for 7500 each and you think you are going to get 3k in rent. HAHAHAHAHAHAHAHAHAHAHA You know I am from the Detroit area right?
I call BS. My meter is going off. The alarms are blasting with this BS
Real Estate Investor · Miami Gardens, FL · Member since 2014 · 9 posts · 4 votes
11y
I mention the downtown area because if there are more jobs downtown that means more people downtown. Those people will be looking for a place to rent or buy. From the janitors to the execs. They all need a place to stay. The truth is they all will not be able to afford the same type of place. That is where investors come in. Looking and paying attention to what is happening in any market. Then reacting with some foresight is necessary. I am sure someone is investing in the Detroit market and when it turns around they will be in an excellent position to reap the benefits.
Wholesaler · Commerce Township, MI · Member since 2015 · 11 posts · 8 votes
11y
Scott K. It was actually $38,000 total for the 4 properties w/ $8000 spent in repairs. Total money invested $46,000. (3 are rented at $750 and 1 is at $795). Normal brick bungalows in ok areas. I have a short sale that was approved today for $10,000 and closing next week w/ a built in tenant @ $750. I understand it sounds like BS and your entitled to your own opinion. I'm in the city 5 to 6 days a week, maybe one day we can get coffee and discuss it further.
I think what Scott was trying to say is not that you might not have bought those properties or seen these rents initially but that over time there are huge risks. Think about what you just told us is a 6.5% rent to price property or 3x+ what most people consider a really good deal. If that was workable in the long-run don't you think we would have all picked up and moved to Detriot by now?
Scott K. It was actually $38,000 total for the 4 properties w/ $8000 spent in repairs. Total money invested $46,000. (3 are rented at $750 and 1 is at $795). Normal brick bungalows in ok areas. I have a short sale that was approved today for $10,000 and closing next week w/ a built in tenant @ $750. I understand it sounds like BS and your entitled to your own opinion. I'm in the city 5 to 6 days a week, maybe one day we can get coffee and discuss it further.
I a all for it. I would like to meet and chat. I am all ears and have an open mind
"This year alone, Wayne County has started foreclosure proceedings on 56,000 properties, with about 20,000 of them headed for auction. In 2015 county officials expect to foreclose on an additional 75,000 parcels."
Also, I see that growth is down 18% over the past 12 years for that area?
Still, being the greedy, risk-taking person that I am, I would be open to throwing $10K or $20K at this area to see what happens, but only after some very thorough reseach.
Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes
11y
All the real good cheap stuff in the 7.2(downtown and greater downtown is spoken for). Your next best bet to find something cheap is the North End which is about 3 Miles North of Downtown, but off Woodward and Oakland Aves, or maybe the east Jefferson Area.
Also, if your Spanish is pretty solid, and can handle dealing with people without a verifiable job, or immigration papers, SW Detroit, in Mexican Village could be an option.
In all these places I mentioned you better be ready to dig in hard on a renovation, and take control of the property. I spent my first three weeks at my places in Midtown(Projects are very close by) telling the a few of the younger locals whatever they were doing wasn't going down on my street anymore. Getting some Graffiti remover from Home Depot, and removing their tags off of light poles let them know you mean business. I'm not saying go Gran Torino on them. But they are all just a bunch of bullies, and once they realize you are not scared, they will go away.
I would never suggest for a first-timer investor to do Detroit. There are plenty of suburbs in SE Michigan you can cut your teeth on. Once you have a feel for what you are doing then venture into the City.
I think what Scott was trying to say is not that you might not have bought those properties or seen these rents initially but that over time there are huge risks. Think about what you just told us is a 6.5% rent to price property or 3x+ what most people consider a really good deal. If that was workable in the long-run don't you think we would have all picked up and moved to Detriot by now?
There are deals to be had like that all over Detroit. The issue in the long-term are Property Taxes and Insurance. I imagine he scored these 4 places on a fire sale somewhere in Northwest Detroit. But this area lacks a major grocery store, movie theater, chain restaurant, etc. But all of these things are located 2-3 miles up the road in Southfield. So you are only going to get people who WANT to live in the City or HAVE to live in the City.
Very few people in today's climate like to be "first on the beach". They rather move into a nice neighborhood, with all the amenities they desire. So thats what stops people from relocating. Just remember Midtown and Downtown what functions of what is just a normal functioning Village and property values and rents are skyrocketing. I'll be the first to say those area are being valued to high. There are 139 Sq Miles and 75% of the private money, mortgages, loans are happening in "7.2" plus the 2 square miles of Indian Village, the 4 square miles off Livernois and 8 Mile, and an area of Rosedale Park. Everyone is is basically in a "let them eat cake" situation.