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.