Detroit, Michigan cheap real estate

[Cheryl Alarcon]

Hello! Is anyone investing in Detroit, MI? I’ve seen houses on Zillow for only $2500. Granted they are just shells, but I’m wondering with a full renovation if the area has potential for long term rentals. What are the property taxes and insurance rates like? 

[Travis Biziorek]

I have 12-doors in Detroit. Most purchased between 2019-2021.

I have a ton of experience in that market, a hugely strong network, and a ton of construction knowledge. I would not touch any of those houses for $2,500.

They will cost you $100k+ to renovate and you will have all sorts of problems along the way. Generally speaking, the home will not be worth what you put into it.

Buying those houses was a great strategy 6+ years ago. You could get them pretty much rent ready in decent areas. But what's left now are the ones nobody wanted. 

Best bet in Detroit is to focus on C Class areas where you can be all in for a SFH in the $70k-$90k range.