Multi Family in Detroit Suburbs

[Brandon Brewart]

Looking into investing in small multi-family homes in the suburbs of Detroit. Anyone have any particular cities that they've had luck in? Does there seem to be a large proportion of mult-family housing in any particular areas?

[Joe Hammel]

Biggest challenge with small MF in the suburbs is inventory. Being, not much. With the scalability of MF being more desirable over SFH, this extra demand, drives prices up and ROI down. It's all Relative though. Can you still find a 1%+ Duplex? Of course. Is this good ROI? Of course. Might not be the insane ROI some are looking for when they thinking of "investing in Detroit" but still good properties. Buy something and let the magic of Investing in RE do it's thing. Cash flow, appreciation, loan paydown, tax benefits. At the cost of a few headaches lol.

Really depends on your goals. It's a tradeoff of location/ROI.

Ranging from sub 1% deals to 2% deals we find inventory in:

- Westland (C- ish location) high ROI

- Lincoln Park

- Warren

- Mt Clemens

- Grosse Point (high price, lower ROI, A ish market)

- Wyandotte (higher location, lower ROI)

- Detroit

and a few others pop up here and there.... pretty much need to watch the whole metro area, and be ready to recognize, analyze, and jump when you see "it".

obviously, these are just some examples and generalizations...