Might Not Be Able to Get Hard Money
I don’t know if it’s still the case, but as of a few years ago, you couldn’t get a hard money loan in the city of Detroit anymore.
If you’re relying on hard money, it would be smart to make sure it’s going to be available before you start putting in the time, effort, and money looking at properties.
Stick to “Bread-and-Butter” Properties
3 Bedrooms or More
Stick to houses that have three bedrooms or more.
Stay away from two bedroom houses. Everyone expects three bedrooms in the city of Detroit.
Stick to Brick
Stay away from houses in Detroit that aren’t made of brick.
If you buy a framed house, you’re just going to make it that much harder on yourself to find a buyer in a city that’s already declining in population.
Garage is Preferred
You need everything going for you that you can if you’re trying to sell in Detroit.
If you can get a house with a garage on it, you’re doing yourself a favor.
The garage can be attached or detached, but attached is preferred.
Taxes and Insurance in the City Are High
I can’t remember where, but I read about someone on Kevyn Orr’s team stating that the tax assessing system in Detroit is broken.
People are being charged way too much for taxes for less-than-stellar city services, and the properties aren’t even nearly as much as they were when the tax assessed values were established for the properties.
I read a post in the Detroit News not too long ago that mentioned that the tax issues could very well be a part of the reason why so many people have left the city of Detroit, and that taxes in Detroit are the highest amongst big cities in the US.
So I hope you found this helpful. This is far from an exhaustive list of things to look out for, but I hope you found it at least somewhat useful.
Best of luck.
By the way, what’s your personal biggest concern regarding the state of real estate in the city of Detroit? Leave a comment, let’s talk about it.