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Detroit
are there any investors from Detroit who could give an ameture advice on how to start
Tasha,
The first question is: what type of investor do you want to be?
Buy2Rent? Flipper? Note investor?
Originally posted by @Account Closed:
are there any investors from Detroit who could give an ameture advice on how to start
Do you own your own personal residence now?
Yeah... what are you looking to do? I thing Detroit is great for buying to rent in the right neighborhoods... just be careful because it's sometimes easy and tempting to buy too much house.
Originally posted by @Stephen Lovett:
Yeah... what are you looking to do? I thing Detroit is great for buying to rent in the right neighborhoods... just be careful because it's sometimes easy and tempting to buy too much house.
I love my "too much house"
I was tempted to buy a big beautiful house during the last tax auction. I wouldn't have cost much more than the more reserved house that I did pick up. However, It would have cost a ton to heat and I felt that didn't mend well with having renters pay consistently. Those are great to own, but not my target for renting.
We are currently buying Detroit. We bought a package of ten houses, 6 are worth fixing. I will be into each one for roughly 12 - 15k. The 2 that I have finished are renting for 775 / month.
Things to keep in mind, past due taxes, past due water bills.
Other then that... game on in Detroit!
I have nothing but income producing properties, let me know what you are interested in
We are dealing with more and more Chinese investors looking to invest in Detroit, and we are also looking for expertise in this area.
Our investors are buy and hold (looking for income producing properties but no "war zones". There must be high probability of upside potential for capital appreciation.
Any particular neighbourhoods that would be most appropriate for this type of investment?
Sam Van Horebeek there are lots of areas that may fit your criteria. There are TONS of pitfalls and scams so be careful about who you work with. I'd be interested in meeting you and helping you any way I can. My particular strategy is to stick to the areas I know like the back of my hand.
I'd recommend looking into the following zip codes in MW Detroit for buying and holding: 48219 (but not Brightmore), 48221, 48235, and parts of 48227. Depending on your capital, also look into Southfield and Redford. Right now in Southfield for example, my grandma bought the house next door to her for $65k in 2009. Rented it for a while to a family member. And sold it last summer for $119 in 48033. Now you can probably get into 48033 for around 80k cash for a 3 bed spend about $10k and sale around $120. Renovated houses do not last long around here if they are priced right. Southfield is stable and quickly returning to the prices of yesteryear.
Sam Van Horebeek I forgot to mention that rent for a 3 bed over here (48033) is about 1200-1500/mo and attracts quality tenants. My gf is a scientist and I'm an attorney and we are renting here while looking to find our dream home. My mom and 3 other friends alone are looking to buy in this area. It's hot and prices are going up seemingly every month. I'm kicking myself for not pulling the trigger on an awesome house around the corner sooner.
What are the good areas to flip?
Also, can anyone recommend a good contractor and RE agent in those areas? I'm in LA but looking into the Detroit market to flip.
I am building my buyer list and I would like to work with you. I am working on deals in Metropolitan Detroit, MI area.
If interested please send me a pm and we can talk further.
Thank you for your valuable time.
Originally posted by @Ludmila Hill:
What are the good areas to flip?
Also, can anyone recommend a good contractor and RE agent in those areas? I'm in LA but looking into the Detroit market to flip.
Hi Ludmila. I'm also investing in Detroit from LA. I'd like to connect with you and hear about your experiences.
We have bought and sold over 200 SFR properties in the Metro Detroit area and would agree with many of the comments left so far. When you are looking to invest in this area feom out of state, it really boils down to finding a great boots-on-the-ground team with property management. They are going to be your eyes and ears to protect your asset. Also, if getting into rentals, keep in mind your not just buying a property - your inheriting the tenant.
Metro Detroit has great opportunities, but it varies block to block - house to house. We focus on the area, because we grew up there and for SFR it offers a great purchase/rent ratio. My best advice is don't be scared off by the Detroit haters, but be sure to do your due diligence.
I have a very good contractor that I work with on Detroit properties. Feel free to send me a note if you're still looking.
I'm heading to Detroit next month. I'm looking someone to show me around the town. If anyone can help out I would greatly appreciate it. I would like to form a partnership as well.
Sorry guys I've been working like crazy the last few days. But I want to buy a duplex. Buy and hold is what I'm planning on doing. I don't own a house as of today but I have a duplex here in houston under contract that I'm planning on house hacking for a year. I'm a new investor but I'm ready to get out there and get to work. I'll be buy my first property in Detroit as a JV partnership. Networking in Detroit with a seasoned investor is my goal. Thanks for all that took the time to read and reply.
Hi Folks, just wanted to follow up on this thread, any updates on how people are doing? Did any of y'all buy properties in Detroit?
@Rebekah Keller I have just started investing and now in a process of buying my second turn-key property in Detroit in 2 months. Very happy with the ROI. I am not only out of state but also out of the country investor. But I was able to find some good professionals in the area that I am now working with. Very happy so
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Quote from @Anatoly Dobrovinsky:
@Rebekah Keller I have just started investing and now in a process of buying my second turn-key property in Detroit in 2 months. Very happy with the ROI. I am not only out of state but also out of the country investor. But I was able to find some good professionals in the area that I am now working with. Very happy so
Hi Anatoly,
I'm interested in hearing about how your 2 properties have performed since you purchased them. Have you bought any others? If things are going well what was your method in finding a good local team for your investment? How long did it take to find them?
If you're not going to be here locally it's easy for things to go south quick, great cashflow but also great risk if you don't have a "legit" team, which is very few, lots of wannabes. At the least if you're going to invest here I suggest to spend a couple of weeks looking at the city and going to local investor meetups and networking with local people and THEN invest.