Buying Rentals In Detroit
Member since 2019 路 15 posts 路 3 votes
Buying Rentals In Detroit
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Drew SygitBusiness Member
Property Manager 路 Royal Oak, MI 路 Member since 2012 路 12k+ posts 路 9k+ votesQuote from @Jared Rollins:
I was hoping someone had a street-by-street map to stick to of Detroit and also could explain to me how to assess the future taxes on rental properties. Any additional information would be greatly appreciated. It's hard to shift through what are good buys when the houses are all over the place with prices even if it's just a street over. Thank you everyone!
We've got most of what you want covered - in a logical fashion:)
DM us to schedule a chat!
@Greg Scott thanks! DM me when you'll be in town next 馃槑
Logical Property Management4.9460 Reviews
9 Replies
- 8moGreg ScottPro MemberRental Property Investor 路 SE Michigan 路 Member since 2014 路 4k+ posts 路 6k+ votes
I'm from Metro Detroit, but never have (nor ever will) invest in the City of Detroit. Still, I'm happy to throw you some pointers.
First, you had best understand property taxes in Michigan. If the property has been held a long time before it was sold to you, property taxes can double or triple on a property. Tax increases are capped at ownership so they rise slowly. Once a property sells, they uncap and taxes go to market value. The math is easy enough. Look for the Assessed Value and the Taxable Value. When uncapped, they lower one moves to the higher number. Then apply the millage.
@Drew Sygit has some good resources on investing in Metro Detroit, including the city proper.
- Member since 2019 路 15 posts 路 3 votes8mo
Quote from @Greg Scott:
I'm from Metro Detroit, but never have (nor ever will) invest in the City of Detroit. Still, I'm happy to throw you some pointers.
First, you had best understand property taxes in Michigan. If the property has been held a long time before it was sold to you, property taxes can double or triple on a property. Tax increases are capped at ownership so they rise slowly. Once a property sells, they uncap and taxes go to market value. The math is easy enough. Look for the Assessed Value and the Taxable Value. When uncapped, they lower one moves to the higher number. Then apply the millage.
@Drew Sygit has some good resources on investing in Metro Detroit, including the city proper.
Is there a reason you wouldn't invest in the area? Thanks for the tips on assessing the taxes!
- 8moGreg ScottPro MemberRental Property Investor 路 SE Michigan 路 Member since 2014 路 4k+ posts 路 6k+ votesIf you have driven around the City of Detroit, some times you are in a decent area and walk one block away and find you are in a nasty area. You need to have block by block knowledge, which I don't. Detroit is also famous for its opaque, inefficient, confusing, and sometimes corrupt bureaucracy. I don't want to deal with that.
Quote from @Jared Rollins:
Quote from @Greg Scott:
I'm from Metro Detroit, but never have (nor ever will) invest in the City of Detroit. Still, I'm happy to throw you some pointers.
First, you had best understand property taxes in Michigan. If the property has been held a long time before it was sold to you, property taxes can double or triple on a property. Tax increases are capped at ownership so they rise slowly. Once a property sells, they uncap and taxes go to market value. The math is easy enough. Look for the Assessed Value and the Taxable Value. When uncapped, they lower one moves to the higher number. Then apply the millage.
@Drew Sygit has some good resources on investing in Metro Detroit, including the city proper.
Is there a reason you wouldn't invest in the area? Thanks for the tips on assessing the taxes!
Meanwhile, there are plenty of vibrant suburbs in the areas surrounding the City of Detroit that make great rentals. They are smaller communities with less bureaucracy, easier to navigate.
In any event, if you go to Drew's website, he has a map that can help you and he has managed property all over Metro Detroit - Member since 2019 路 15 posts 路 3 votes8mo
Quote from @Greg Scott:
If you have driven around the City of Detroit, some times you are in a decent area and walk one block away and find you are in a nasty area. You need to have block by block knowledge, which I don't. Detroit is also famous for its opaque, inefficient, confusing, and sometimes corrupt bureaucracy. I don't want to deal with that.Quote from @Jared Rollins:
Quote from @Greg Scott:
I'm from Metro Detroit, but never have (nor ever will) invest in the City of Detroit. Still, I'm happy to throw you some pointers.
First, you had best understand property taxes in Michigan. If the property has been held a long time before it was sold to you, property taxes can double or triple on a property. Tax increases are capped at ownership so they rise slowly. Once a property sells, they uncap and taxes go to market value. The math is easy enough. Look for the Assessed Value and the Taxable Value. When uncapped, they lower one moves to the higher number. Then apply the millage.
@Drew Sygit has some good resources on investing in Metro Detroit, including the city proper.
Is there a reason you wouldn't invest in the area? Thanks for the tips on assessing the taxes!
Meanwhile, there are plenty of vibrant suburbs in the areas surrounding the City of Detroit that make great rentals. They are smaller communities with less bureaucracy, easier to navigate.
In any event, if you go to Drew's website, he has a map that can help you and he has managed property all over Metro DetroitThat makes sense. I'm not partial to metro Detroit, the numbers just make sense. But what you are referring to is what I have been reading and made me hesitant and do more research. Are there any areas outside of Detroit that you would recommend?
- 7moDrew SygitBusiness MemberProperty Manager 路 Royal Oak, MI 路 Member since 2012 路 12k+ posts 路 9k+ votes
Quote from @Jared Rollins:
Quote from @Greg Scott:
If you have driven around the City of Detroit, some times you are in a decent area and walk one block away and find you are in a nasty area. You need to have block by block knowledge, which I don't. Detroit is also famous for its opaque, inefficient, confusing, and sometimes corrupt bureaucracy. I don't want to deal with that.Quote from @Jared Rollins:
Quote from @Greg Scott:
I'm from Metro Detroit, but never have (nor ever will) invest in the City of Detroit. Still, I'm happy to throw you some pointers.
First, you had best understand property taxes in Michigan. If the property has been held a long time before it was sold to you, property taxes can double or triple on a property. Tax increases are capped at ownership so they rise slowly. Once a property sells, they uncap and taxes go to market value. The math is easy enough. Look for the Assessed Value and the Taxable Value. When uncapped, they lower one moves to the higher number. Then apply the millage.
@Drew Sygit has some good resources on investing in Metro Detroit, including the city proper.
Is there a reason you wouldn't invest in the area? Thanks for the tips on assessing the taxes!
Meanwhile, there are plenty of vibrant suburbs in the areas surrounding the City of Detroit that make great rentals. They are smaller communities with less bureaucracy, easier to navigate.
In any event, if you go to Drew's website, he has a map that can help you and he has managed property all over Metro DetroitThat makes sense. I'm not partial to metro Detroit, the numbers just make sense. But what you are referring to is what I have been reading and made me hesitant and do more research. Are there any areas outside of Detroit that you would recommend?
Sigh, I've got 30+ years in Metro Detroit and you keep ignoring me 馃槀
Check out the Ring Cities on our website. We've even done Deep Dive videos on them.
Of course, you can keep doing it your way and waste a whole lot more time...
Logical Property Management4.9460 Reviews
- 8moDrew SygitBusiness MemberProperty Manager 路 Royal Oak, MI 路 Member since 2012 路 12k+ posts 路 9k+ votes
Quote from @Jared Rollins:
I was hoping someone had a street-by-street map to stick to of Detroit and also could explain to me how to assess the future taxes on rental properties. Any additional information would be greatly appreciated. It's hard to shift through what are good buys when the houses are all over the place with prices even if it's just a street over. Thank you everyone!
We've got most of what you want covered - in a logical fashion:)
DM us to schedule a chat!
@Greg Scott thanks! DM me when you'll be in town next 馃槑Logical Property Management4.9460 Reviews It's not so much where to buy, it's the price you pay for the property in reference to its location that matters aside from condition. I profit more from a bungalow off 7 mile and Gratiot than a similar bungalow in n Rosedale park. The additional $200 in rent doesn't off set the additional taxes and acquisition costs. Mind you, I'm talking about buy and holds, not flips.
- Investor 路 MI 路 Member since 2026 路 17 posts 路 4 votes7mo
Hey, I don't have information for the city, I am not a big fan of Detroit personally. However, the state of Michigan does offer a property tax estimator (click here). On that same page, there is a link that says "millage rates" towards the bottom that will break down all the different millage rates for the entire state.
You can always try and call the city assessor as well.
Street by street wouldn鈥檛 help. You want zip code and block. My suggestion would be to sketch out sections on the map and there鈥檚 about 12 general areas that you would want to map out and specifically target these neighborhoods.
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