Has anyone bought rentals in Detroit Michigan?

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Has anyone bought rentals in Detroit Michigan?

Fred A Baugh

Contractor · Rexburg, ID · Member since 2018 · 15 posts · 3 votes

I was wondering if anyone has had any luck with rental properties in Detroit Michigan?

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Leroy K. WilliamsPro Member

Property Manager · Southfield Mi · Member since 2018 · 181 posts · 171 votes

Yes plenty of people invest here. Right now we are seeing an influx of investors from South America (Argentina, Brazil) and also more interest from overseas investors from places like Ireland and China. Detroit is quietly becoming a goldmine for investors seeking cash flow properties.

While the opportunity is here, there are many people who cannot figure out how to make Detroit rentals work since there doesn't seem to be many good renters to choose from. There is a way to mitigate this problem if you are creative. The key is creating a better product which will attract a higher quality tenant. Many investors come here and have an extremely difficult time wrapping their mind around the reality that you cannot just cheaply slap a property together and expect a quality tenant. Detroit has alot of homes to choose from so good renters tend to be choosy, if your property is a slum they will likely pass it up. After doing a substandard rehab many times owners or Property Managers will resort to tenanting the home with anyone with a pulse, the first month, and a security deposit just to get some one inside the home and that is often the beginning of sorrows.

Detroit is open for business but its unique and requires tact

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Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Originally posted by @Fred A Baugh:
I was wondering if anyone has had any luck with rental properties in Detroit Michigan?
No. It has never been done before. ;-)
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Alex Kim
Lender · Irvine, CA · Member since 2018 · 71 posts · 15 votes
7y
I’m curious to know what it’s like over there now.
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Keyonte SummersPro Member
Harper Woods, MI · Member since 2017 · 384 posts · 311 votes
7y
@Fred A Baugh yes I currently invest in Detroit and the surround area. I’ve lived there growing up so I’m pretty familiar with the entire city. If you are looking to invest I always say do your research and come out here and stay a weekend to get a feel for the area.
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Alan StalterPro Member
Real Estate Agent · South Lyon, MI · Member since 2010 · 50 posts · 10 votes
7y
I've done many flips and own a bunch of rentals in the Metro Detroit area. Let me know if you have any questions.
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Leroy K. WilliamsPro Member
Property Manager · Southfield Mi · Member since 2018 · 181 posts · 171 votes
7y
Yes plenty of people invest here. Right now we are seeing an influx of investors from South America (Argentina, Brazil) and also more interest from overseas investors from places like Ireland and China. Detroit is quietly becoming a goldmine for investors seeking cash flow properties.
While the opportunity is here, there are many people who cannot figure out how to make Detroit rentals work since there doesn't seem to be many good renters to choose from. There is a way to mitigate this problem if you are creative. The key is creating a better product which will attract a higher quality tenant. Many investors come here and have an extremely difficult time wrapping their mind around the reality that you cannot just cheaply slap a property together and expect a quality tenant. Detroit has alot of homes to choose from so good renters tend to be choosy, if your property is a slum they will likely pass it up. After doing a substandard rehab many times owners or Property Managers will resort to tenanting the home with anyone with a pulse, the first month, and a security deposit just to get some one inside the home and that is often the beginning of sorrows.
Detroit is open for business but its unique and requires tact
5 Reply
Jamiel Strickland
Rental Property Investor · Detroit, MI · Member since 2018 · 380 posts · 244 votes
7y
@Fred A Baugh and @Alex Kim
I own in Detroit and outskirts of the city, we have very high cash flow but low on the equity side. If you looking to BRRR maybe not the first place to choose but if your looking for jumbo cash flow this is the place to be.
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Gary Carver
Realtor · Detroit, MI · Member since 2018 · 387 posts · 129 votes
7y
@Fred A Baugh To answer your question. Yes I am buying rentals in Detroit and have been for 20 years. There are still good deals here to be found. The key is deciding on your investment strategy and having boots on the ground . If you have any questions or need help finding properties let me know
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Fred A Baugh
OP
Contractor · Rexburg, ID · Member since 2018 · 15 posts · 3 votes
7y
I have a list of questions for you. I don't even know where to start.
Is blue collar jobs growing like they say they are
What is the best area to invest in? Why?
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Johnny Lau
Investor · San Jose, CA · Member since 2015 · 89 posts · 46 votes
7y
I just closed on a house last month, the numbers are good. 3/1 SFR, 76,000, 975 rent, around 650/mo cash flow after expenses. So about 10% ROI if my calculations are correct. EI bought it sight unseen with a very good all inclusive team, property management etc. I’m actively looking for the next property. The cash flow can’t be beat and the area is very promising. This was a turnkey house with an established tenant, so the cash flow was immediate. Lots of houses available in wide price ranges from 45k-200k on up.
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Jonathan Cox
Rental Property Investor · Member since 2018 · 62 posts · 19 votes
7y
@Johnny Lau was this a property in Detroit?
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Fred A Baugh:
I was wondering if anyone has had any luck with rental properties in Detroit Michigan?
Detroit is similar to many other Midwestern markets. The inner city can be very blighted but as you move out to the suburbs the asset quality increases along with a decrease in the risk level.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @James Wise:

Originally posted by @Fred A Baugh:
I was wondering if anyone has had any luck with rental properties in Detroit Michigan?
Detroit is similar to many other Midwestern markets. The inner city can be very blighted but as you move out to the suburbs the asset quality increases along with a decrease in the risk level.
as you said that pretty much sums up every rust belt and mid west major metro area.. some of them have pockets of the blighted areas turning around though.. as developers move in and transform those areas.. that's the key though if your buying there.
if your just looking for vanilla sfr's to rent then for sure need to stay out of most urban cores and find the good schools
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Johnny Lau
Investor · San Jose, CA · Member since 2015 · 89 posts · 46 votes
7y
@Jonathan Cox The house is in a suburb of Detroit, it’s in Southfield.
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Bala A.
Rental Property Investor · Memphis · Member since 2018 · 128 posts · 97 votes
7y
@Fred A Baugh
Detroit can be hit and miss, keep researching, there is plenty of information on neighborhoods that are gentrifying.
I have been playing in this market since 2014 and I hold many rentals that I hold for cash flow, I see Detroit as a great opportunity for cash flow and appreciation, and I can not get these numbers anywhere in US. However its not passive investment, it requires more work from my experience.
I also source properties for investors in C and B neighbourhoods.

Feel free to message me if you have questions
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