How is the Market in Zip 48224 and 48227

[Puneet Sharma]

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]

@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:)