Detroit investing?

[Christopher Oliver]

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?

[Saul L.]

@Christopher Oliver

I 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.