Long Distance Investing in Detroit

[Elliott Wolf]

I'm starting to realize it is very difficult to find a cash flowing property even in a decent area in Dallas. My original plan was to do a househack but I was not aware of how competitive the current DFW market is, I currently live here. Developing good cash flow is very important for me more than anything else. 

I have been doing research on other cities and narrowed it down to Memphis, St. Louis and Detroit. Detroit seems very promising. A lot of big headquarters based there and lot of development going on. I have read through various Detroit threads but did not want to hijack anyone else's thread so started this one. 

Based on what I read through everyone's threads, cash flow is amazing but good and bad areas can be within blocks of each other. Also it seems like screening for the right tenants is key. My only concern here would be managing all of this while living in Dallas. I have read David Greene's book already, would it be as simple as having the proper systems in place?

I have some time off right now so would like to visit Detroit this month and get a better feel of the city so would also love to connect with anyone there since I will be looking for realtor and PM if I Decide to move forward with investing in Detroit. 

Long post.. I know... With all of that being said, did anyone invest in Detroit as their first property (OR) any properties from out of state and how has that worked out for you? Looking to hear any experiences from BP members. thanks!

[Travis Biziorek]

First, be specific. Are you talking Detroit or Metro Detroit? I took your post to be the former, but @Joe Hammel is definitely talking about the latter. There is a huge difference... massive.

I haven't read David Greene's book, but I'm betting most of it does not apply to Detroit. The city is a completely different beast than pretty much anywhere else. PM's tend to be varying degrees of awful, theft and keeping properties secure is a real issue, and finding the right tenant takes time and giving a f*#k. 

I get messages from folks on a weekly basis asking for help, advice, etc. because they're in a terrible spot. I know a guy that's been trying to get a house rehabbed and rented for over two years now. TWO YEARS! 

Personally, knowing what I know about the Detroit market, if I were an OOS investor I would do one of two things:

1) Invest somewhere else where OOS investing is more proven. Detroit isn't there yet.

2) Invest in Detroit via a syndicate with someone you trust. 

I firmly believe Detroit will provide incredible returns from both a cash flow and appreciation perspective in the years to come. But you have to know what you're doing... REALLY know what you're doing.