Buy and Hold in Michigan/Ohio C, D Neighborhoods

[Shanae Swaby]

Hi all,

I am a first time investor looking to buy and hold in C, D neighborhoods. Am I crazy??

I have very limited capital to start (<$15k) but want to buy a 3+ unit multi family in Detroit, Flint, Toledo, or Cleveland with either a land contract or mortgage. I’ve seen renovated properties in these areas for <$50k, but they’re in the less desirable parts of the cities. Some even already have tenants so instant cash flow is possible.

I know the risk of less desirable tenants in these types of areas but the risk seems worth the cash flow reward. Is this a generally good way to enter real estate or is investing in these neighborhoods something better for experienced persons?

I would especially love to here about experiences renting in Flint, Toledo, or Cleveland. I have more knowledge on Detroit from personal experience and BP.

[Wendy Patton]

Living in MI and being the biggest supporter of our cash flow homes I would tell you nothing under 30k now is going to get you a good return - it will look good but be a pain in your butt over the long run - most of mine are 50k+  -  the best ones now are about 70-100k  -  also remember we are at the top of the market for properties.  Had you come here in 2009-2012 I could have gotten you nice homes for 25k all in.