Buying real estate in Detroit?

Question

Has anyone ever invested in Real Estate in Detroit? Is there potential ROI? Or will I be wasting my time? Please share your experiences and thoughts?

Jamiel Strickland · Answer

@Leanne Robinson

Yes, Yes, No.

Detroit is just a place you have to more invested in as far as your team, knowledge, surroundings, and time. It is not about the money in Detroit since homes are priced low. It is everything else involved that matters more. When you can get that together you will have really good cash flow in all your homes you buy here.

Zabrina Horton · Answer

I have a few offers in right now.  I reside in Los Angeles, and my business partner resides in Detroit.  She actually works for the Detroit Land Bank, and knows the city inside and out.  What I personally like about Detroit is:

1) Affordability compared to LA - I can buy 5-6 good houses (or a combination of 2 family flats etc) for the price of 1 here.   By good I mean they're fixer uppers, but not junk.  I like buying properties whose rehab isn't astronominal.  There's a lot of junk in Detroit, but there are some gems as well.  Throw in the bonus that if a property is next to a vacant lot I can scoop it up for $100!?  What!?

I also agree with the other responders here, that a lot of it comes down to your team, knowledge, PLUS a little female intuition! :-)  Of course there are plenty of other markets in the mid-west that are also affordable and easy to enter, however, Detroit has other appealing qualities as well.  Such as:

2)  The market there has experienced 25% growth over the past 5 years.

3)  The city welcomes out-of-state investors.  There are lots of programs for small businesses

4)  Other investors and corporations are pouring money into the city to help it get back on its feet.  I'm talking to the tune $100 million and more is coming.  Downtown is already back.  Now, the revitalization is spreading out to the neighborhoods.  Which ones?  That's where you need your team to give you accurate advice and facts.

5) The projected job growth is healthy.  Not spectacular, but healthy.

6) The demand for local, skilled labor is very high to accomodate all the develop taking place now and on the grid.

After Detroit, I plan to buy in another market (besides California), but I'm focusing on one market at a time.

Message me if you'd like to chat further.  My partner and I are planning a mixer/tour/opportunity session the weekend of May 17-18th.  We're presenting next week here in LA as well.

Zabrina Horton

Maurice Smith · Answer

how about grand rapids?

Marisa R. · Answer

All rentals must be certified to meet city standards, you can find out more about this of their site

This in part will improve and gentrify the city

Denzil Dwelle · Answer

I am worried that with so many homes being turned into rentals that the rental market will become saturated, at least in the good neighborhoods.

Tom Ott · Answer

I don't know if I would look there yet unless I was really sure of the neighborhood!

David Stevoff · Answer

@Leanne Robinson

James hit the head on the nail again! The team you have will make or break your investment. There are some good turnkey providers in the area if you want to go down that path. There are also quite a few agents and wholesalers on BP that can be of benefit to you if you go that route.

Joe Villeneuve · Answer

If you don't know the area I wouldn't recommend it...unless you partner with someone local that does know the area well.

Buying real estate in Detroit?

Most Popular Reply