What are the Best Suburbs for Buy&Hold in the Detroit Metro area?

Question

I've come across some great posts concerning the Detroit area and appreciate all the experience and knowledge present on BP. I have an investment partner and we've been done 20+ deals in the past 12 months throughout the U.S. We are based out-of-state but looking to potentially focus on the Detroit Suburb area. We are primarily interested in finding buy-and-hold rentals requiring minimal initial repairs. Hoping some of the experienced investors in the area (i.e. @keith Jourdan @Ericka Grant) would be willing to provide recommendations regarding good neighborhoods where SFR prices are still below the $65k range, good rental market, and values are rising. Many Thanks!

Account Closed · Answer

@Jonathan Miller hello, I am from detroit originally and its just like any big city .. there are decent areas and bad areas and areas that I would not go to after dark .. and I worked all over Detroit back some 25 yrs ago .. I still have family there but not in Det anymore ..they have long moved north to the middle of the state .. Hazel Park is a good area .. Anything you can find in Royal Oak or Berkley is a great rental area and full of yuppies types that have extra income to spend .. i doubt you can fund anything in those areas for $65 or under .. I would guess that east Detrot is where you want to focus .. over by East Point and Gross Point areas Centerline .. Hamtramck is a great place .. most units are duplexes with a top unit and a bottom unit .. I actually lived there for a yr and loved it then .. like I said though .. this was 25 yrs ago .. but not much has changed .. there is a wholesaler I was talking with that deals with Mich / Det properties .. Ill see if I can find his email and give you his contact info .. I wish you the best ..

God Speed,

Michael

God Speed,

Michael

Jonathan Miller · Answer

Account Closed, That all sounds like solid information and will certainly be helpful. Based on what you mentioned, East Detroit may be where we end up. Multiple Multi-family rentals is the eventual goal, so it could be a great fit. Thanks for the insight!

Jonathan Miller · Answer

Thanks for the reply Account Closed, every bit of information helps!

Account Closed · Answer

I tried to get the rental property owners info through my friends that lived in the 2 houses but they haven't gotten back to me. I was interested myself. I do know they wanted way too much for what condition they were in. They basically wanted arv but each houses needed upgrades and some other work. Therefor I just stopped looking into those deals. Utica is like a royal oak. It's a smaller, tighter city and and they just built a jimmy Johns ball park right in the downtown utica area. Downtown utica also has smaller shops, entertainment etc. Prices are a bit higher than some of the surrounding areas but values are there pretty good. Like I said im new also but I'm just going off of what I do know. One of the houses was a little over 700 sq. Ft. With a detached one car garage. The landlord wanted $110k built in 1940. Looking at some of the comps, it seems that's what arv was around, give or take. I just knew of the possible opportunity and started to look into it. Both friends wanted to buy the houses but didn't due to the price they wanted but didnt because the owners wouldn't budge.

Account Closed · Answer

Sorry for the typos. Fast typing on my phone!

Account Closed · Answer

I am a noon who hasn't done any deals yet but I have researched quite a bit from wholesaling, to flips etc. There are areas of detroit that are up and coming but I don't know specifically. I have heard from a friend that there are good flip opportunities in Hazel park. As far ares buy are snd holds, metro detroit are snd rea is a give or take. There are a lot of opportunities throughout from what it seems.just on my street where I live alone, I know of 3 properties that are rentals. I also have 2 friends that rented 2 different houses from the same landlord. That landlord is now selling all of their properties. There are opportunities everywhere is what I'm getting at. You just have to dig and research really. I'm in that process myself. I am leaning more toward the buy an hold but with multifamily or aapartments.That seems to be a tougher market though. I hope this helps some!

Katherine S. · Answer

@Michael Short

With all due respect,  a lot has changed in Detroit in the last 25 years,  both negative and positive.

Qui James · Answer

Hi All! I'm Qui a realtor and property manager who lives and breathes Detorit...whiich is why being a Realtor should have been my first choice out of college.

Anywho, the best buy and hold for now would be Flint. I know it's not exactly a suburb but my reasoning makes sense. The water crisis left a lot of property open and on the market for dirt cheap. Government grants are pouring in. Once that money kicks in and the market comes back (obviously will start with renters) you will triple your money at least.

The next invest and hold I suggest is Highland Park. Why? It's way too close to Downtown Detroit which is filling up immensely. They have already started flattening land. And what is the sign of something new coming in Real Estate? Bike lanes and demolition! This area holds some amazing architecture too.

Now, because I am so educated on Detroit, it will be too much about all the zp codes which are best to invest in. However feel free to contact me.

What are the Best Suburbs for Buy&Hold in the Detroit Metro area?

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