All Forum Posts by: Jon W.

Adam, feel free to reach out.  I might be able help you. 

Great to see some positive threads on the Detroit area.  Nice data by @Marisa R.   I would like to agree with the comments by @Nate Heaps, the lower end properties are hard to match in real life vs what you get on paper.  I have found that moving up into the better neighborhoods/price points get a better area/tenant/rent/outlook. Yes, many neighborhoods have appreciated beyond being easily investible (think Corktown) but there are a lot of others that have real potential.  You need to know where to look and be ready to pounce when good properties come up.  The best only last a handful of days.

Also, many investors are getting fined by the city for not having their rental or vacant property registered and licensed.  This is something Detroit did not enforce for a long time but they are rolling out enforcement by zip code.  Even locals seem to not know.  Make sure you keep up on it and build it into your budget.

@Sevag Guedikian I am an investor/realtor and live in Rochester.  I agree with most of what has been shared so far in this post.  Rochester is not a cheap area so rentals that make money are hard to come by but flips work.  The cities around Detroit are best for rentals but the city of Detroit has some of the best potential right now if you know what you are doing or know someone who does.  Feel free to reach out.  I work with many out of state/country investors and actively invest in flips and buy/holds myself.

Well put @Isaura Orellana. The big three have doubled down.  I think the biggest impact will definitely be Ford and the buildout of the train Station and Corktown campus.  It will be a big draw and do a lot to attract talent.  Many of our investors get as close to Corktown as possible.  The buildout is still a couple years from completion so there is time to get in.  I would be happy to speak with you further regarding target areas.  Most of the neighborhoods are changing quickly as development happens.   

@Scott Mac, Hitsville USA is also undergoing a big redevelopment project.  It is already a destination but will be even bigger and easier to visit when completed.  

I agree with all that has been said here so far.  A few years ago, you could get a $20k home is a good area but it needed a bit of work. Now, usually, you can only buy for $20k in a bad area needing a lot of work. More work than it is worth to get it rental certified.  Then you have to deal with the tenants who want or have to live in that area.  I don’t recommend. 

I am a local investor and have used many different management companies.  I now only use Investors Property Management Detroit.  ipmdetroit.com.  They are investors as well.  There are others that are highly recommended like Epic Property Management. However, I do not think they manage in the city of Detroit.  

There is a lot of development/investment going on in and outside of the city and there are a TON of neglected homes that need work.  Detroit has a shortage of skilled trades at every level. It is difficult for locals to find good people and even more difficult for out of state investors. But you can find them.  I would say you definitely don't want to use the guy that is available today and you don't want the cheapest bid.  That is a recipe for issues.  Join some facebook groups and search for past recommendations. Good luck.

The Metro Detroit area has some great RE Meetups every month.  A big one is the renegade detroit Investors meetup.  It is free and is one of the bigger ones.  https://renegadedetroit.com.   There is also the metro detroit real estate investors group that meets in Troy and is free as well.  There are a many more in and out of the city.  Some free some cost a small fee.  Definitely no need to start your own. 

if you buy from the land bank it all needs to have permits. 

Thanks for the comment @Abby Barnes.  This is a very old thread so I am no longer working on a land bank home.  I have done a few now.  But your comments are very helpful for those just finding this thread. Thanks for taking the time to share your experiences.