Investing in the Detroit Area

[Ben Osran]

Hey BP!

I am looking to do out of state investing in the Detroit Area. I have a friend who lives in Detroit and we will be partnering up on our first deal so that we have boots on the ground in the area. We are looking to purchase a duplex in the 100-200k range and want a CoC return of around 8-12%. We will be financing our first deal and will be looking for a PM has well. A property that needs little or no renovations would be ideal for our first property.

I am wondering if you guys have any more insight into specific areas that are good to invest in? I ran the numbers on some properties and they meet well above the 1% rule, but that sort of worries me... It seems some of these numbers are too good to be true. I also notice a lot of the school systems are not rated that well. What is your experience investing in these areas? Are you meeting the 1% rule with good cash flow?

Any thoughts or insight would be much appreciated. Thank you!