Is It Worth All of the Repairs to Try to Buy a Home in Detroit?

Many residential real estate investors get spooked by the idea of investing in Detroit due to the significant repairs most properties here will likely need.

Whether or not it’s worth it comes down to your resources, budget, contractor network, timeline, and end goal – factors that will significantly vary from person to person.

For starters, you’ll want to consider the fact that the majority of Detroit’s most affordable properties require $30,000–$100,000 just in renovations. The upside is that once these properties are finished, they often far exceed the purchase and repair costs, especially in up-and-coming, highly sought-after corridors such as Bagley, Aviation Sub, and Grandmont-Rosedale.

Sweat Equity = Value

Although Detroit’s repair-heavy inventory may scare off casual buyers and first-time homeowners, the market here poses real opportunity for investors with long-term vision and patience.

It also helps that there are a number of mortgage programs, city grants, and neighborhood renovation funds in place for first-time buyers and investors alike, as well as low-interest loan opportunities.

Look no further than the Rocket Community Fund and the Detroit Land Bank, both of which greatly reduce the risks associated with renovation by subsidizing the cost of improvements.

All in all, if you’re prepared to put in the work or can afford to hire the right contractors to do it for you, the payoff in Detroit’s residential market is huge.