I just got back from a real estate seminar, and when people hear that I’m from the Detroit area, I often get the question, “Should I buy property in Detroit?”
And I always tell them, “It depends.”
Today I’m going to explain why I say that. I think people expect a yes or no answer, but I honestly don’t think it’s that cut-and-dry.
In fact, some might prefer to make money off of properties in the area in a more passive manner. Below is a video I made on the topic that might be of interest.
If you’re more interested in being more involved, skip the video, and proceed below.
Some people might prefer to make money passively off of real estate in metro Detroit
I truly think it depends on your risk tolerance, how much you’re willing to spend, and a bunch of other factors.
Related: Why I Prefer Homes For Sale in Detroit Suburbs
Detroit Real Estate is a Polarizing Topic
I know people that make great residual incomes owning property in Detroit.
They’re of the mindset that they’re willing to own cheap rental properties here-and-there in the city, but that’s about it.
But I also have some friends that wouldn’t touch property in the city of Detroit with a 10-foot pole, REGARDLESS of what neighborhood the house in.
Why We Only Buy-and-Hold in Detroit
We only buy-and-hold in the city. And we won’t even consider buying a house in Detroit unless it sits on a nice block.
But we won’t do rehab jobs in the city, for a couple reasons in-particular:
- I’m really nervous about having a house sitting vacant in Detroit for an extended period of time. I’ve had so many things stolen out of houses I’ve owned that I don’t want a house sitting vacant in the city of Detroit for a month or more while it’s worked on and waiting for an end buyer.
- The values are too low in my opinion. It doesn’t make sense for me to buy a house at $10,000 to $15,000, only to have to put $10,000-$20,000 worth of work into it, and to only get an appraisal value of $50,000.
That’s not a big enough profit to make it worth the hassle of going through a rehab in my opinion.
There are a couple other issues that go into our decision not to flip in Detroit, but those are the main two.
Let’s talk about some other things you should think about before you decide whether or not you’re going to invest in Detroit…
Related: 15 Ways to Find Tenants for Your Rent to Own Homes in Detroit Michigan