Originally posted by @Scott K.:
Originally posted by @Dan Gheesling:
@David Roberts while I understand your desire to stay away from Detroit, there are some great deals to be had, but you have to know exactly what you are doing. The city is not as forgiving as a Dearborn Heights, thus indicated by the lower cost of acquisition.
I am so tired of hearing this nonsense. Please post some of these great deals you are speaking of. Show it to all of us. If you need to know what is and isn't a good BLOCK than that means the whole area is garbage.
Honestly do you people understand what is going on in the neighborhoods?????????? If you are not in downtown then everything is a risk. Do you think all the **** blocks were ever good blocks. Ask yourself how can you make money when they steal everything from your property. You people are just silly. If you want to be a scumbag slumlord so be it but that is not why most of us come to biggerpockets.
Detroit is losing people everyday because of the crime and the blight. Your house will be next to be blighted
Hey Scott,
Judging by your strong opinion, stating "nonsense" I don't think anything I am going to post is going to be earth-shattering to you. :)
Detroit is not the typical area for most investors. It is actually block by block, there are some protected type areas with good neighborhood watches, strong communities, etc. Of course some good blocks change into bad blocks, but with knowledge of the specific areas you can limit your risk.
To answer your response of how do you make money when "they steal everything" - I'm guessing either you have had a bad experience, or no experience at all in Detroit. What has always worked for me is having a good quick crew to secure a house when either acquiring or changing tenants.
Oddly enough the only time I have had something stolen was after I purchased a home from a county auction, and the tank got stolen, but it wasn't in Detroit, it was in Dearborn Heights! I was mad of course, but understand it is part of the risk. Out of all the transactions I have had, I look at my batting average for things stolen, and it's really good so I can't complain.
"Scumbag slumlord" - if you think that owning properties in a lower-income area and having a property manager handle the day to day for you as a scumbag slumlord, then I guess you'd be correct. But considering I own homes in both Detroit and the suburbs, I tend to not think of myself that way.
In terms of the Detroit areas I like to invest in, I stay primarily in Northwest Detroit, because that is the area I am MOST familiar with. Not to say there aren't better/good deals in other areas of Detroit, I tend to stay where I am most familiar.
"Your house will be next to be blighted" - while I don't know you, nor you I, I wouldn't wish any ill on any of your investments, but I am confident that the properties I do have are in solid areas, that I don't have to worry about that.
Bottom line Scott, I know that you don't like to Detroit, and have a bad impression of it. But there are many people, myself included, who have added Detroit properties to the portfolio that are very happy. Would I want a portfolio consisting of solely Detroit properties? No. But the numbers make sense for me, to have it as a portion of of holdings.
Either way, I really take no offense to your opinion, but realize some people are doing very well in Detroit Rentals. :)
Best,
Dan
