Appreciation concerns in Detroit area!

[Tyler Haskell]

Hello BP,

After analyzing several areas surrounding Detroit Michigan, I believe that I could invest in SFH with good cash flow. I have not taken a trip there yet but there are pockets of good neighborhoods suitable for investing. I am looking at the Eastpointe and Redford neighborhoods surrounding detroit. The main concerns I have with long term buy and hold strategy in this area are:

Because the neighborhoods are so diverse, and one street to the next can have a completely different ambiance/class, does that make for volatility and instability for long term buy and hold?

Because Detroit is probably a long LONG way from recovering or thriving the way it once did, and the area itself may see continuing population and economic decline for years to come, does that mean I should expect NO appreciation in home values? What does that mean in terms of long term holding?

And the last thing I noticed in my analysis is these areas is that they have 99% SFH and about 90+% owned with 10% or less rentals. How does that play into owning a rental in that area? in your experience does that mean that there could be a higher demand for rentals/easy to find rentors, or the opposite?

Once again, inventory seems plentiful, great COC returns seem possible, but the external constraints of the city and the environment are worrisome. Thanks for any input guys!

Tyler Haskell