Interested in purchasing investment properties in Detroit but was curious about couple of aspects...

Asked by Sean Arias, Texas Fri Oct 17, 2008

1. How tricky are the city inspections and post sale ACR? What type of items are identified most for repair? Costs involved?

2. Are there any property management companies available that would manage properties? What is the typical costs? % of rent? Flat fee?

3. Is section 8 a good strategy for consistent payment of rent? Are Sec 8 guidelines more intense than City Inspections?

4 Are certain areas receiving higher rent than other? Why?

5. How do taxes come into play with these foreclosed properties? Are they still at assessed values and can you protest?

6. Finally, I see a lot of notes in property descriptions saying that the new owner must clear water bills and what not., how common is this.

Any help with these questions or direction where to get this info online would be appreciated.

Help the community by answering this question:

+ web reference
Web reference:


Martin Hatton, Home Buyer, Detroit, MI
Thu Oct 13, 2011
Hi Sean, Here are some answers to your questions. I have been buying investment properties in Detroit for quite some time now and I have had many bumps and bruises along the way but feel like I have a pretty good system going now.

1) The city inspections will not be an issue as the city pays little attention to the properties that are being rehab'd. You will want to focus more on Section 8 inspection guidelines

2. I have a great property management company that I now work with, whereas before I went through through management companies every quarter. They do what they promise Premier Property Management, ask for Linda she is a sweetheart 248-838-3811. They charge 10% of rent

3. Section 8 is my only way to go. Rent comes in every month. It might take a month or 2 for them to get you your first checks but after that they are on time and in full. The inspections aren't bad. You just have to have a contractor who knows what they are doing.

4. Definitely. I get much better rates on the Northwest side of Detroit. 800 on average. I try to stay away from East Detroit as there is more crime.

5. I have an attorney who gets them lowered. It can take a bit of time but it works.

6. Very Common. May I offer a bit of advice. Don't try to do this all yourself. I got burned doing just that. Use a reputable company that knows how to address all of these issues. I have had great luck with MTA Development Group Ask for Phil or Tom they are really knowledgable and they will guide you along. I just hope you don't steal any of poroperties that I will want. Well good luck to you and I hope that you find success investing in Detroit.

1 vote
big boi, Home Buyer, Detroit, MI
Wed Dec 17, 2008
1. Well the thing is the pre sale inspection may come up with a list of issues that you get completed before occupancy. After you fix the home up and get the other inspection, that inspector can find something different than before. Mold, electrical, plumbing, and roofing to name a few.

2. Property Management is typically 10% of the gross income.

3. Well yes, because with Section 8 they are very picky of the homes and standards they allow for the individuals with vouchers to live in.

4. YES YES YES. Its with any city, do yur research.

5. You can get the taxes reassessed, but typically in Feb the taxes are adjusted and a notice should be mailed out, typically if you dont agree with the taxes still you protest the amount (be sure to prove why you protest it).

6. If you buy a home in Detroit be sure that they clear that water bill. Remember the water bill is attached to the house, not the individual. So each owner is responsible for any bill remaining on the home. I would advise you to get a final meter reading on the properties you buy and have the seller pay for it if the amount is high. Also before you rent it out be sure to get a pamphlet from the city water dept that allows for landlords to place the bill out of the property address and into the tenants name.
0 votes
Gordon Johns…, Agent, Plymouth, MI
Sat Oct 18, 2008
Hi Sean,

Send me an e-mail at and I can help you with a couple of these questions and give you a good suggestion on where to get the rest of the answers.

0 votes
Search Advice
Ask our community a question

Email me when…

Learn more