Cash out from Detroit Property

[Roy Gutierrez]

I'm thinking of buying a property in  Detroit in an up and coming area (NorthEnd Area). Does anyone have any experience doing a cash out (probably after 6 months) on Detroit investment properties?

[Christian Hutchinson]

Its very risky, banks don't lend in Detroit.  To get a good rate is even harder.  I have a property in the North End.  I have discussed in other threads. Many times banks say they will lend, they will get a good appraisal, have good cashflow, and they will see houses 2 blocks away that are significantly devalued, a house across the street sold at tax sale 6 months ago, etc.  They will not do the deal because of risk.

IF you can get financing or have a reliable lender go for it.  But I would operate under the premises that whatever you put in will be parked for about 2 years. At that point the rental performance will be more concrete, its a proven market (and you in it).