All Forum Posts by: Scott K.

scoot that's the thing,  where are the troublemakers going to go? I don't know a thriving detroit.  I haven't been alive long enough and i expect that i will never see it in my time.  

Well, to the best of my knowledge! Investing in Detroit be good! The properties being sold dirt cheap.

I have never found the need to carry a gun in the City but I will concede that even though there are boarded up houses in some areas I visit I avoid the more difficult areas. I am sure you never see people out in public who are high or drunk in an area as upscale and affluent as Madison Heights. (For those who are not local I am being facetious.)

This is a very unusual thread. It contains the wisdom of @Tom A. explaining that there is both opportunity and peril in Detroit (probably not unlike most other urban centers) and Scott K. posting comments without being totally negative. I complement you @Rosalina Brenda Berk you seem to have a rare talent for starting threads. You should do so more often.

Unless someone is on the ground in Detroit it's hard to know the good deals from the bad. The housing stock can still look good even in a bad neighborhood, until vacancy goes up, the houses get scrapped and burnt, and then it's obvious it's a bad area. A lot of investors have lost money in Detroit. It's not for the new investor, the casual investor, the ignorant investor or the idealist investor.

There are some great neighborhoods in Detroit for investment as well as ones I'd live in myself. Certain areas of Detroit are really hot right now. Some people have made a lot of money recently due to appreciation, and the cash flow can be good if you invest correctly.

That said, I really don't care to have many out-of-state or out-of-country investors buying property in Detroit. They do a number of things which hurt the city and the people who live here. 

One, blinded by ROI promises, they buy crappy houses in crappy neighborhoods from shady turnkey companies. The investment doesn't perform, the far away investor cuts their losses and abandons the house, the neighborhood which was struggling to begin with is blighted by another abandoned house.

Two, buying on ROI, even if they have a decent house in a decent neighborhood, either they or their property management company cut corners and don't maintain the house properly and it starts to look "rental-ish" in a neighborhood with lots of owner-occupants.

Three, they or their property management company fails to adequately screen tenants, resulting in a trashed property that the investor may not reinvest in to fix up to neighborhood standards, becoming a blot on the neighborhood.

Four, the property management company may blatantly rip off the investor, pocketing the rent, the repair funds, and renting out the now crappy house to any derelict who can pay a few hundred dollars a month.

Astute local investors don't usually make these mistakes.  They tend to keep a closer eye on their investments and have a stake in the future of the area since they invest there, live nearby and know what's happening in the city.  They aren't going to let things slid into disrepair and react by reallocating their investment capital to a city 1000 miles away.

So rather than dispute the comments like the ones by @Curt Davis or own local Debbie-downer when it comes to Detroit (Scott K, where are you?), I'll partially agree with their take on it and hope the investment activity tilts more toward locals and away from the block of long-distance investors who really aren't a net positive for the city I love.

Hello,

Detroit! Good, bad, or ugly for buy and hold rental property? I'd love to hear your story. 

I'm researching markets for my first investment and I obviously want to go where the math makes sense. 

If you are a Detroit investor - How long have you had your property(ies)? How is the job growth? Are you a local or out of state?

Since I'm in California, one option is to find a reputable turnkey company. On that note, anyone have experience with turnkeys? I feel like they're too good to be true, but maybe I'm wrong. 

Thought or suggestions are greatly appreciated. 

Thanks!  

-Brenda

I have a house under contract. The daughter of the owner lived in the home for some time, but abandoned the home. Her boyfriend abandoned his car on the property. The realtor is telling me that it may be possible to put a lien on the vehicle and take possession after a certain number of days (30 or 60). Is anyone familiar with the process of obtaining ownership of an "abandoned" vehicle in Michigan?

 Lincoln Park wasn't investor friendly at all when I had properties down there.  High taxes, fees, inspection happy (sad actually).  Low rents/sf compared to other areas.

I'm not thrilled about Lincoln Park, but a few certain areas I am ok with.  If your rental is in one of the areas that I like, I'll be interested.  Message me or email me your info whenever.  Thanks!