I live 40 min. north of Detroit. There actually is a lot of opportunity here. Believe it or not there are a lot of out of state investors putting there money here because the numbers are so good.
PNW is right if your doing deals in low income areas (Detroit, Pontiac, ect..) you really must know the area inside and out. there are great streets and terrible streets. I know people doing very well in Detroit buying nice brick homes 35-40k very little rehab selling to people that are happy to pay much more for a great home. On at least 5 of the last 7 houses I worked on for an investor in Pontiac $15,000 houses in (Oakland County) I have had people knock on the door and ask when they can rent the house (during demo)! These houses rent for $750+ the Pontiac rental market is great right now.
Detroit also has some of nations most affluent suburbs. The Airport is planing to add 60,000 jobs, Lots of jobs being created in the medical field, In Clarkston they are building a $400+million dollar medical campus right now, New casinos in Detroit, Lots of new commercial building.
Don't get me wrong we are in a depressed economy here and things are tuff but people are still getting married still having babies and still buying there first house. And if they have lost there house to foreclosure they still need to rent. 93% of people are still working.
Don't believe all the doom and gloom. Lots of people making a lot of money right now in this market.
