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:)

[Jordan Hubbard]

Just here to say that I lived in the Detroit Suburbs from 2013-2017. You can be on one block and it's great, and go to the next and it's not. It is SO hard to say this from a zip code as the person above has mentioned. You really need boots on the ground here I feel. 

[Michael Smythe]

We are boots on the ground:)

[Travis Biziorek]

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.

[Victoria Always]

Travis, can we connect and talk about Detroit?

[Travis Biziorek]

Quote from @Victoria Always:

Travis, can we connect and talk about Detroit?

 Sure, feel free to shoot me a message any time.

[Dominique Morris]

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.

[Angela Matambo]

Quote from @Travis Biziorek:

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.

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

[Travis Biziorek]

Quote from @Angela Matambo:

Quote from @Travis Biziorek:

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.

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

 Sure, just sent you a message.