Investing in Detroit

[Madison Loftis]

Looking to buy a duplex or multifamily homes from wholesaler or auction in the areas surrounding downtown Detroit. I know we will have to put about $25k+ of renovations and I read that refinancing does not work well in the area. Would the "no and low money down" be the correct way to go and take a $30k rehab loan from a private lendor or pay cash for rehab costs. If pay cash how do we scale and invest in more properties from there with out refinancing? 

[Markos Gerges]

@Madison Loftis Unfortunately its extremely difficult to find a property with minimal rehab in those areas that Alex is mentioning you have to keep in mind that house flipping is really hot in those areas because investors come and buy a property for 60k put 30-40k into the home and sell for 150-180k. These are not light rehabs, they are quite heavy duty. Why not start in the suburbs and find something that only needs cosmetics or light rehab for your first property?

I'm quite aggressive with my numbers since we've been doing this for some time so it may not be a good comparison. If you ever have any questions please feel free to message me.