How is the Market in Zip 48224 and 48227

Question

Hello Fellow Investors,

Looking to help out a friend. He's looking to start his real estate journey and found an agent through a forum who is suggesting to start investing in Detroit, MI (Zip 48224 and 48227). The agent is offering to find a property, rehab, and manage it as well. He's getting numbers like $80K for a 2Bed 2Bath single family homes, additional $20 for rehab, so total under $100K and rent estimate is around $1000. But he's not sure about the area or potential growth in Detroit market. Any comments/feedback/suggestions would be helpful. Thanks in advance!

Michael Smythe · Answer

@Puneet Sharma it is VERY risky investing in the City of Detroit via zip code!

Also, this agent appears to be a novice (or setting you up for failure) as they should know about what areas have growth potential.

$100k for a 2/2 is high for the City of Detroit, unless at least Class B.

So, you should take time to understand the NEIGHBORHOODS in the City of Detroit.

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

Contact us with any other questions:)

Cameron Porter · Answer

48221 is investor heavy. Good at arv in that zipcode

Otis Gathing · Answer

48224 is pretty good zip code $100,000 as your total all in investment just to make $1,000 is a little high. There's better deals than that, whenever you are looking to invest Off Market is the way to go. Most of the stuff on the MLS is overpriced. Message me if you want access to some of the best deals in town.

Travis Biziorek · Answer

Yeah, absolutely. My DM's are always open for you or anyone else.

Mikelle Willis · Answer

Hi Travis. I know this is an old message. I'd love to talk to you about your investments in Detroit. I live in CA and have two doors in Detroit and I'm hoping to get more. I'll send you a message. Thanks!

Michael Smythe · Answer

We are boots on the ground:)

Travis Biziorek · Answer

Hey Puneet, we should connect. I live in California and own 12-doors in Detroit. I have five houses in the 48224 zip code.

Like some have noted here, Detroit can be very block-by-block. Not all of 48224 is good, just like any zip in Detroit.

The numbers you are stating aren't great. I personally wouldn't buy a 2 bed house for $100k all in in Detroit. You can get a 3 bedroom house for less than that and rent for $1,200/mo.

I help investors get started in Detroit all the time, and happy to chat if you want to shoot me a message.

Travis Biziorek · Answer

Sure, just sent you a message.

Angela Matambo · Answer

Hello Travis I would like to connect with you about investing in Detroit

Dominique Morris · Answer

I'd highly suggest he sees these homes, the zip codes good refernce however, in detroit the block can be street-by-street almost. There are certainly other szip codes to invest in in Detroit, if he looking for properties in appreciating areas.

I'd really suggest him research deeper into detroit.

How is the Market in Zip 48224 and 48227

How is the Market in Zip 48224 and 48227

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