All Forum Posts by: Richard Dunlop

"One reason that growth potential is high is that property values are so low relative to the rest of the country. Even though the average price per unit has doubled since the trough in 2012, it was still only $55,124 in 2015, less than half the national average of $117,256."

The above quote is from an article linked in this thread

This is why I repeatedly point out that the appreciation is better in Detroit than anywhere and the cash flow is a magnificent bonus.

"One reason that growth potential is high is that property values are so low relative to the rest of the country. Even though the average price per unit has doubled since the trough in 2012, it was still only $55,124 in 2015, less than half the national average of $117,256."

The quote is from the article linked above, This is why I repeatedly point out that the appreciation is better in Detroit than anywhere and the cash flow is a

magnificent bonus.

If you are buying right in Detroit you can bank on the appreciation it is better than anywhere and great cash flow as a bonus.

There is LOTS of new construction going on in Detroit!

But what area of Detroit?

Since you can still currently buy Beautiful built homes for less than 5 cents on the dollar of new construction cost I don't understand the benefit of building new. 

I wanted to copy a couple of posts from another thread that perfectly illustrate some of the points I have made earlier in this thread.

I posted : "Bigger Pockets is full of Detroit haters! Yes including lots of Michigan people that live in the suburbs that were expecting their property values to go up rapidly and are bitter when they see Detroit values going up 5-10 times as fast as the suburbs.

I am invested in seven of the Detroit area cities and the ones in Detroit are generally better performers."

@Christian Hutchinson

Posted not as a direct answer to me but in the same thread:

 "My Wife and I kick ourselves daily that in 2009 there were townhomes on Woodward next to Comerica selling for 55K as high at 70K and we felt it was crazy, we bought our house in Madison Heights. NOW those same places are selling for mid-300K and command 1900-2500/mo in rent. Meanwhile our house in MH went from 50K to 88K and gets 950/mo. We missed the boat majorly on that one."

@Saul L.

I flagged you because you continue to warn people to run from Detroit when a more accurate warning would be:

 "just not to do it the way you did it."

In other words the same warning I have been making for years now. I don't know @Christian Hutchinson but I thought his example was excellent and wanted you to see it.

@Javier Gaillard

This is an example of possibilities in the area. Did you ever get involved?

@Brian SullivanI voted for your second post You got 2 votes from 2 active investors that buy houses in Detroit including me. 

In your first post you did come across as "Nothing good in Detroit except its past" and @Saul L. took your statement and pointed out since you were local and don't invest there then of course nobody should.

In your second post you said: "but I am actively looking in Detroit"

As I've pointed out it takes more than a property manager to be successful in Detroit. And i don't advocate investing in Detroit and then hiring "experts" to assist you from afar. 

All the time I see people talking about building their "team" in Detroit: (Real Estate Agent, lawyer, accountant, property manager, contractor, or TurnKey company) All of those people make more money the more you buy and they're getting paid out of your pocket before you make any money and whether you do or not.

Good luck as you explore the jungle South of Eight Mile

Bigger Pockets is full of Detroit haters! Yes including lots of Michigan people that live in the suburbs that were expecting their property values to go up rapidly and are bitter when they see Detroit values going up 5-10 times as fast as the suburbs.

I am invested in seven of the Detroit area cities and the ones in Detroit are generally better performers.

For a person to talk about visiting their grandmother years ago and seeing the neighborhood change does not qualify them as a Detroit expert. Rochester is a very nice Northern suburb about 15-18 miles from Detroit.

Reread this and my other early threads, WHERE are my critics today?

There were lots of critics that said buy in the suburbs stay out of Detroit! But from a review of their profiles they don't even seem to be involved in RE anymore at all!  (Or perhaps they just don't come to BP anymore)

In several of the threads I have invited the "local" Detroit Doubters to come down and tour the neighborhoods with me. See parts of Detroit they have never seen before or parts they have not seen in 10-15 years.

But again I have NEVER advocated buy a house in Detroit and sit and watch it from afar.

Detroit has houses that are better than 95% of the cities in the US!

Detroit also has houses that are worse than 95% of the cities in the US!

BOTH inside the city limits of Detroit.

I live inside the city of Detroit and am glad I moved from Orange County California.

 I do recommend Michigan but it is a different world from LA. 

It takes more than a property manager to be successful in Michigan. I relocated from Orange County CA to Detroit because of the opportunities up here.

I've been investing in Detroit for over 7 years now.

It's the best market anywhere!