All Forum Posts by: William SaintAmour

I work on regional data projects quite a bit, and here are some links that will give you some sense of housing stock and growth projections.  There are tons of data that you can drill down to zip code and even into street (the demographicsnow database is free on the Michigan Electric Library).  Here are some links for regional data nerds and anyone starting to look at investing in Michigan or the Detroit area:

http://library.demographicsnow.com/?skey=26466B4949934359B90C9F951B451819

http://www.drawingdetroit.com/wp-content/uploads/2015/09/housingSEMCOGmedianyr-2.jpg

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.194.7349&rep=rep1&type=pdf

http://proximityone.com/metros/2013/cbsa19820.htm

https://files.zillowstatic.com/research/public/rea...

Excellent question - I'm running into a similar issue on a 4-plex in Michigan.  I look forward to learning from the community.

Good plan. Careful not to overpay, but don't be so super picky to find the perfect deal that you don't get started. Do you have your property criteria written down?

Do you mean City of Detroit specifically within city limits, or do you mean SE Michigan? Ford is investing in Dearborn, and that is worth a look, as are many, many communities in the counties ringing Detroit.  Regarding Motown itself, there are good and bad neighborhoods like any other city, and you need to be really, really sure you know the differences there.  There is a lot of redevelopment going on, and there is a second bridge to Canada going in soon. Detroit is actually one of the biggest international crossings in the world. The question is if it can throw off decades of poverty, corruption, and economic collapse. The jury is out, but there is new hope and new activity.  Outside Detroit, many city economies are thriving.

You live in the area, so you may want to ask about good neighborhoods, drive them, and check adjacent areas too.  Then go to info infousa to see how many new residents are in that area. Look at school building ratings and parks . Finally, check with the city police on crime in that area.  I don't know about regulations, but check that too.  Detroit is a roll of the dice in the city itself, so dont build your whole portfolio there. Good luck!

I think I would avoid Lincoln Park for now. City finances are a concern if you look at their CAFRs, and that may result in issues with future city service levels: police, street repair, etc. I like the other communities Scott mentioned, and would add Royal Oak.  Most spots in Oakland County, western Wayne County, Washtenaw County, and up around Brighton and Howel are growing.

On the west side of the state, Kent County and south are strong and will be stronger as Chicago grows.  Benton Harbor is one that I would be a bit careful of, but they MAY be recovering, have a great location, plus there is a guy out there that make really, really excellent mead (yes, as in Vikings). Black Deagon Meadery is a real gem.  Good luck!

I am familiar with Dearborn, and like all towns, there age good sections and not so good sections.  Having said that, Ford is getting ready to consolidate a lot of their global staff there, citizen satisfaction rates are well above state and national benchmarks (this is what I do professionally), and city leadership is smart, business savvy, and well aware of how to avoid the issues facing Detroit. The University of Michigan has a campus there, and there are many other companies and industries active in its economy.  

While Josh may knock Detroit, there are really excellent areas outside the City limits and across the state that are entirely different situations. Royal Oak, Ferndale, Oakland County, Ann Arbor, Kent County, and Kalamazoo are all worth a look.

Great discussion. I'm buying a mismanaged 4-plex and going through inspections today, then the bank has another 30 days to process. What would be valuable to ask my tenants?

Very helpful feedback, everyone. Thanks, and have a wonderful holiday!

I'm a BRRRR investor with SFRs, but I'm seeing a lot of old buildings built around 1900 that are vacant, structurally sound, already have utilities, and are dirt cheap. I'm seeing these in the small towns that are fringing larger cities such as Lansing, Kalamazoo, etc. On a ballpark estimate, what is the cost to build out loft apartments in this type of space? The roof, foundation, etc. are already good, so it's the interior work that needs done.

Aside from the usual pitfalls of multifamily, any special dangers about this type of project?  The local zoning director is excited about any development, so variances shouldn't be a problem.  Thanks!

And for a background example: 5,000 square foot brick two level picked up for $10/foot.  Empty storefront on lower level and large empty space on the second level.