Detroit - Ecorse/River Rouge

[Michael Arnold]

Have you had recent success owning rental properties in these surrounding Detroit communities? I realize these towns have been through the economic gauntlet for many years. Would love to hear your experiences in these communities. Ecorse, River Rouge, Melvindale, Westland.

[Keith Jourdan]

Originally posted by @Joe Villeneuve:

I hope you're not hearing stay away from all.  There are some great micro-markets in Westland, Redford, Livonia, Ypsilanti, Wayne, Garden City, Taylor, and more.  I'd stay away from Ann Arbor unless you have big pockets and lotsof time to wait.

Agree 100%

I own several rentals in Westland/Wayne/Redford and they have been great to me. These cash flow far greater then Canton/Livonia will. 

I tell everyone to stay away from Detroit, unless you are in a select few areas, Indian Village/Midtown/Palmer Woods/ Cork Town. However these areas are mostly $300k+ at the moment and do not cash flow at all.

The rest of Detroit is a landlord nightmare. Sure you can buy all the turnkey houses you want for $30k and have a long line of renters willing to pay $750 per month, but things will not go as planned. Very high turnover, tenants wont pay, when the tenant moves out and the house is vacant you will get your furnace/Water heater stolen. Home insurance is very expensive/ taxes are very expensive.

Ecorse/Melvindale/River Rouge are not the best areas, better then Detroit but not nearly as nice as Westland/Garden City/Wayne area. Parts of Melvindale that border Allen Park are pretty good.

I try and push my clients to Redford/Westland/Wayne area. Buy for 80-110k and rent for $1100-1300. in a good/safe area.