If you're investing and Detroit and think that all neighborhoods are created equal, you're in for a rude awakening. You're in a similar situation if you're purely shopping by price and think that the cheaper you can buy a house in Detroit, the better off you'll be. The truth is that you need to make sure that you're investing in the areas with the solid homes and great neighborhoods where families want to invest. We currently only invest in 5% of the City of Detroit because these are the areas where census data shows us that families make $35k to $55k a year, they have 2 kids or more, and they have some college education or education beyond a high school diploma. Add to that the on the ground data that shows there are no board ups or burn outs in the immediate vicinity, there is a pride of ownership in the neighborhood, and there are actual families living in the neighborhood, and you're setting yourself up for buying where families want to live, you'll rent it out easier, receive higher rents, and have less turnover. When you focus on buying in a neighborhood and not just a house you'll have the previously mentioned benefits as well as still getting great cash flow and having the greatest chance for growth when the market turns for the positive.
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Happier Investing,
Jeremy Burgess
The Detroit Market Expert
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