Investing Detroit Michigan

[Jesse Hopcus]

Hello, today I spoke with someone that said that the market in Detroit Michigan seems to be doing very well.  I am wondering if anyone knows the market well and can give me some insight.  I know that there are of course areas that I want to stay out of.  Also if you are an agent or a property management company please reach out to me.  I am building a team and am going to start investing there in the next few months.  I am interested in buy and hold and and possibly doing some fix and flips,   Thank you.

[Drew Sygit]

As an out-of-state investor, you want to take time to understand the difference between Metro Detroit and the City of Detroit. 

The suburbs of Metro Detroit are pretty much what most investors are familiar with. We always recommend the Ring Cities (cities touching City of Detroit) for landlord novices. Fairly easy to find rentals that will meet the 1% Rule, give a good ROI and average tenant problems.

Going into the actual City of Detroit, the Downtown, Midtown, Corktown, etc. redeveloped areas are going to be tough to meet the 1% Rule. 

Going outside of those areas is an adventure! The rest of the city is mostly Class C & D properties. You can find deals that far exceed the 1% Rule (like 2%), but with higher returns, comes higher risk. The majority of the tenant pool for these areas has under 580 FICO scores and are a challenge to manage. YES you can find solid Class C properties and screen for "solid" Class C tenants, but you have to know your way around the city.

Please do NOT ask about zip codes! We can show you losing properties in the "best" zip codes and great properties in the worst zip codes. You can search here on BP and find many experienced Detroit investors saying, DETROIT IS BLOCK BY BLOCK. 

If you're serious about investing here, DM us:)