Real Estate Market in Detroit-How to…

Investor-friendly agents in Detroit, MI

See the agents BiggerPockets members work with in Detroit, MI.

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
1y

@Jesus Schwoerer 2-4 units allows conventional and FHA mortgages, which do require you to owner-occupy one of the units for the first 12 months, but only require 3-5% down!

What's important about investing in the City of Detroit is knowing the 183 Neighborhoods - which ones to target and which ones to avoid.

Fortunately, we've made that easy for investors with our exclusive, color-coded map at our website:)

[email protected]248-209-6824
Logical Property Management4.9469 Reviews
WebsiteView Page
2Reply
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1y

    Please share your definition of multi-family:

    2-4 units

    5-50 units

    50+ units

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    0Reply
  • Jesus Schwoerer
    OP
    Member since 2022 · 5 posts · 1 vote
    1y

    2-4 family rental 

    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    1y

    Hi Jesus, I have a ton of first-hand experience investing in Detroit. I own 12-doors there... 2 duplexes and 8 single family homes.

    Happy to share some resources I've compiled if you want to reach out.

    0Reply
    • Jesus Schwoerer
      OP
      Member since 2022 · 5 posts · 1 vote
      1y
      Quote from @Travis Biziorek:

      Hi Jesus, I have a ton of first-hand experience investing in Detroit. I own 12-doors there... 2 duplexes and 8 single family homes.

      Happy to share some resources I've compiled if you want to reach out.


      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1y

    @Jesus Schwoerer 2-4 units allows conventional and FHA mortgages, which do require you to owner-occupy one of the units for the first 12 months, but only require 3-5% down!

    What's important about investing in the City of Detroit is knowing the 183 Neighborhoods - which ones to target and which ones to avoid.

    Fortunately, we've made that easy for investors with our exclusive, color-coded map at our website:)

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    2Reply
  • Jesus Schwoerer
    OP
    Member since 2022 · 5 posts · 1 vote
    1y

    Hello Travis. I would really appreciate any resources you can share that would help me in my rookie investing journey.Presently, I’m getting some listings through an agent that I found in Bigger Pockets.I live in Florida and will  be investing in Detroit.2-4 property type.

    Thanks

    0Reply
    • Travis Biziorek
      Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
      1y
      Quote from @Jesus Schwoerer:

      Hello Travis. I would really appreciate any resources you can share that would help me in my rookie investing journey.Presently, I’m getting some listings through an agent that I found in Bigger Pockets.I live in Florida and will  be investing in Detroit.2-4 property type.

      Thanks


       Absolutely, feel free to reach out via DM and I can send you some resources.

      0Reply
  • Wendy PattonBusiness Member
    Real Estate Consultant · Clarkston, MI · Member since 2009 · 864 posts · 350 votes
    1y

    @Jesus Schwoerer If you are in Metro Detroit please look us up - I host the largest group meeting in Michigan for investors and we happen to meet tonight.  I also have some great resources for you here.

    Michigan Real Estate Investors540 Reviews
    WebsiteView Page
    0Reply
  • Jesus Schwoerer
    OP
    Member since 2022 · 5 posts · 1 vote
    1y

    Hi Wendy, I’m actually out of state but

    Interested in investing on a 2-4 unit.Thanks.

    0Reply
  • Joe HammelBusiness Member
    Real Estate Agent · Metro Detroit, MI · Member since 2018 · 614 posts · 666 votes
    1y

    Metro Detroit has what 99% of Real Estate Investors want. Couple hundred bucks a door monthly cash flow, solid ROI, and yes plenty appreciation. (#1 appreciating city 2023)

    I personally make well over $100k/yr cash flow from my portfolio here. All of which, I’ve purchased within the last 5 years.

    There are 2 types of people who dog on Detroit..

    1. People who don't actually own property in Detroit

    2. People who did it wrong and weren't able to execute.

    If you do it right, it’s arguably the best market to invest.

    Purchase: $80k-$130k

    Rent: $1100-$1500 (no rent control in MI)

    1% rule: .9%-1.4% rule deals

    Coc ROI: 4-12%

    Total ROI: 20-40%

    Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)

    Appreciation: 3-10%+ (has been double digit for a decade)

    Location: C+, B-

    These numbers are based on the "sweet spot" in Metro Detroit. These are largely in the suburbs and some markets within the city. You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases. Where these numbers are found, there is a very high rate of rent actually being paid.

    We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, and mortgage industry National footprints. Ford, Rocket mortgage, Beaumont hospitals and more. All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.

    The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties in poor condition, because they pencil out to 2-3% deals on paper. We don’t buy those.

    We have found what works and repeat it as much as funds allow.

    Detroit has one the highest rent to price ratios in the country…and we focus on the best balance of price/location within the area.

    Here is a picture of my portfolio if you/anyone is curious.

    [email protected]248-422-1685
    FIRE Realty Team - Keller Williams5380 Reviews
    WebsiteView Page
    0Reply
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