@Christopher OliverI own a few houses in Detroit and I bought them in 2014 for the supposed ROI. I have since discovered that the ROI is on paper only. After 3 years of trying very very hard to stabilize these properties and get them cash flowing like I want - (and believe me I tried- spending thousands of $ including visits to Detroit every year) I have come to the conclusion that it is not viable to do from out of state. I bought in the better neighborhoods in NW Detroit, have a good management company in place and still cant make it work the way I want to. Don't get me wrong - they are cash flowing and giving return- but nowhere near being worth all the headache and risk.I would caution you very highly - Dont get into this market as a newbie from afar- You will get burnt. There are a fortune of articles on BP on why to stay away from these kind of properties especially if you are not local: here, here, here and here - just to mention a few. I am sorry I didn't come across them before I got into the market.Having said that - there are some very successful investors on the ground in Metro Detroit doing very well- and I have met quite a few. IMO they are managing to do what cannot be done by an outsider.

Brand new to bigger pockets. I can tell you that I started with a few properties in a NW Suburb of Detroit during the big downturn and now have 90% of my properties in Detroit. There is no better place to invest!! You just have to know what you are doing. Where else in the world can you buy a house for $500 - $5000 and receive a rent payment for $600+? The comments about block to block being extremely different are very true but if you know what you're doing its a goldmine.

@Janann Chan Welcome to lesson 1 for foreign investors in Detroit. -( and I wont say I told you so)Your lease with the tenant will define who is responsible for DTE. I am prepared to hazard a guess that you haven't read the lease, or probably haven't even received it.

I invest in Detroit and in seven different suburbs but have always tried to stop people from buying properties in the area unless they were partnering with a knowledgeable local investor. Detroit has houses better than 95% of the cities in the US but it also has houses that are worse than 95% of the cities in the US both inside the city limits of Detroit!Block by block is too general. I usually don't buy a house unless I like the neighbor. Knocking on the neighbors door, sometimes it is the solution when I meet a neighbor that has lived there 30 years. BUT sometimes it is obvious THEY ARE THE PROBLEM!

I agree with Saul that it's really hard to manage the property in Detroit for out-of state investor. I bought a property in 2015 Aug and I would like to sell it now as it's hard for an out of state investor to manage the property.Just wonder what I can do if I want to sell the property? Mind to share any trusted contact? P.S. Is there any penalty if I file the income tax late?Many thanks for your reply.

My philosophy is invest where you know best. That usually means near home. investing from afar increases your costs and risk. It decreases you ability to know the market inside out. Those that know the market the best get the best deals.I bet there are good places to invest withing an easy 1 1/2 hr drive of where you live.I am sure there is lots of opportunity in Detroit for those that know the market well. It seems like a mine field of risk for those that don't.

Janann Chan to add, yes. In Detroit DTE covers electric and gas. Still, you shouldn't be paying for either. And IF the lease they have you using states that you will lay then that raises red flags as to why the management company would even suggest it. It's really really odd to me. And their reasoning that gas and electric are separate still doesn't answer why you would be paying either in the first place-unless the house was vacant.

Thanks for the post Ramone. The management company clarified with me that I am paying the gas but not the electricity. They said "Detroit DTE Energy supplies the gas AND electric at properties." The bill for me is only gas. So will the usage of gas decrease as the weather become hotter?Thanks all for the input

I own a house in the NW and I can testify to its spottiness. My house sits where the block clubs remained active through the tough times. There are still houses that are empty but, for the most part, they are hard to recognize because they are taken care of by neighbors. Sometimes the empty houses look better than the lived in ones.Unfortunately, you can go a mile away and it looks like a bomb hit. In general, from the Lodge above Six mile to Woodward is where there are great houses. People think of Detroit as a place for cash flow but I don't see it. There are way too many houses competing for too few people. The deal in Detroit is appreciation. This is especially true in the 48202 zip.

I invest in the suburbs only. unless. I was close but, I'd never buy in Detroit. there are streets, neighborhoods with 100 year old houses in complete ruins. who has that much time and risk tolerance to see if that stuff will come back one day?

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Updated over 8 years ago, 05/11/2016

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Christopher OliverPoster

Lender
Peekskill, NY

Marketing Your Property

Detroit investing?

Christopher OliverPoster

Lender
Peekskill, NY

Posted December 18, 2015 06:52

I was looking to Detroit for over a year now. What's stoping me is the distance. I just want to hear from others in the area or preferably those doing it out of state on how they are doing it and how do you recommend I should start?

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