I have been buying homes in Detroit for a bit now, and I do buy in East Detroit. If I could make a suggestion to you it would be that you buy in the Northwest side of Detroit instead. I have had a lot of problems on the east side of the city that I haven't had on the west side. Of course if you own enough properties on either side of the city problems will happen but they are greatly reduced on the west side of the city. I work with a company called MTA Development Group, they always seem to have a good list of tenanted homes in the Northwestern section of the city. I am several thousand miles away from my properties in Detroit so I truly need to have a secure feeling that my properties are in good areas. Of course these areas also bring the highest rent prices. I hope this helps you out a bit.
Cheers for now
For the last 150 years, real estate has gone in cycles, usually every 5 to 7 years, where it goes down and goes back up. With properties at $2K per property, they will rent and cashflow or they can be sold on a land contract/seller financing for $500 down and $300 a month and you will STILL make money RIGHT NOW, not even when the market goes back up, which should happen in the next 2 to 3 years or so. It's hard not to make money when the properties are so cheap and still in decent areas.
I have bulk properties available that I get directly from the banks and asset managers in all areas of Detroit and surrounding areas for $2K and up that are decently good properties that will rent out easily and well and also have a property management company working with me that will do all of the work. With all of the properties that I have, I have never had a problem renting them out and having them cashflow.
If you would like more assistance in investing in homes, please let me know. Thanks for your question!
1st Thought Investments
the property, street and neighborhood. Contact me about my Photo and Video Inspection Services.
http://www.zilpy.com/ ..... http://www.rentometer.com/
These might help you with deciding about the market..
http://www.housingpredictor.com/worstmarkets.html ..... http://www.housingpredictor.com/michigan.html
1st Thought Investments
I have been swamped with people looking to invest in Detroit. In the tri-county area Detroit is the only city that is up on sales. You can't find another area in the US that a $9,000 investment can yield a $800 per month (Cleveland you can buy low, but doesn't return as high according to news reports). You must find a buyers agent you trust as I've meet buyers from out of state that though $30k on a property with an ARV of 100K was a good deal their agent told them, (it was not). The City of Detroit varies by as much as $200,000 block to block (study, study). A real estate agent can't direct you to a neighborhood, just ask would you buy it then listen to the answer.
One challenge with Detroit, Dearborn, and some other cities is the required City inspections. Either a home must pass certification before being sold, or buyers must sign an Affidavit of Compliance and Responsibility ACR that you will complete repairs and pass inspection within 6 months. Keep this in mind for many areas in Michigan.