How is the market in Detroit?

Question

Are people buying in Detroit? I'm wondering the state of the market in some areas, particularly 7 Mile and Ryan. I feel like most people are against buying in Detroit, but I've heard arguments for both sides.

Scott K. · Answer

Wow that's one of the worst areas that you could find in the city.

Have you taken a drive in that neighborhood?

When you can drive a couple miles north and be in the brubs at a good price why would you buy in an area everyone is leaving.

Seems like Joe and I have to explain this to this whole forum.

Joe Villeneuve · Answer

@Michael Heal The suburbs are a better bet.  There are some fantastic buys in Detroit itself, but once you have it...what are you going to do with it?  Detroit is for the "big boys (girls)" that can afford to take complete control over an entire neighborhood and force property values.  The small players will get frustrated and crushed.

You can buy a house (or what's left of it) for less than $10k, but there is usually back taxes (a lot of...) that increases your cost (surprise!).  They would cash flow a couple hundred a month, but you need to collect the rent, fix what keeps breaking, and deal with tenants that disappear in the night.

One day Detroit will come back, but not in the near future...and it will be the bigger players that can do volume (large) that will do it.  Until then...

...I'm investing in the suburbs.  Now there's where you can make big bucks...and it is much more stable.

Michael Heal · Answer

That's why I'm here, for the education. Thanks guys.