The #1 Market for Appreciation and Cashflow | Detroit, MI Real Estate Investing

We are obsessed with maximization.
It’s all about the data baby. We have chosen to participate in the markets with the absolute best metrics and on top of that pay out higher profit than anyone in the industry.

CASH FLOW IS KING
The best market for cash flow deals is Detroit. The motor city’s price to rent ration is 5.67, the best of any city in the USA. The next best city in Memphis, TN which has 2x worse ratio at 10.46. And let’s not mention west coast cities like San Francisco that come in at a whopping 51.79.

“Detroit is the king of cash flow when it comes to broad market-level analysis. The Motor City not only meets the 1% rule, but it also actually has an RTP above 2%! Far and away the best of any city in the United States.

-Bigger Pockets

MUCH APPRECIATED
Guess again which city had the highest median home price appreciation over the last 5-years. You guessed it, Detroit, MI.

Coming in at 105% Detroit has outpaced the rest of the country in appreciation. This is a rare phenomenon as most markets with high cash flow usually have more modest appreciation.

Here is a link to the article with data of the top appreciating markets in the country.

Residential property values in the city climbed an average of 31% last year, marking the fifth straight year of growth, Mayor Mike Duggan announced Tuesday.

-Detroit News

PURCHASE POWER
The home price-to-income ratio is important as it measures the ability of the average homebuyer to qualify to buy a home. .

For those of you recognizing a pattern you won’t be suprised to hear that the city with the healthiest home price-to-income ratio is, drummmmm rollllllllllllll. Detroit, MI.

Detroit’s home price-to-income ratio is 1.8. A normal ratio is around 5 and on the far end of the spectrum at the top spot we have Los Angeles coming in at 13.6.

Here is a link to the article with data of the top markets based on home price-to-income.

“The number one city where paycheck goes the furthest is Detroit, MI.”

-Forbes

THE SMART MONEY
During 2021 Detroit was one of the top 7 markets in America for investment property purchases with 19% of homes purchased by corporations.

Dan Gilbert owner of Quicken loans has been instrumental in the turn around of Detroit investing 5.6 billion through his development company Bedrock to revitalize the city’s real estate sector.

Even with rising interest rates cash flow deal are still penciling out in Detroit and corporations will continue to buy there.

Bedrock has invested or allocated a total of $5.6 billion across 100 or so properties in downtown Detroit and nearby neighborhoods, and said it has 98% occupancy of office and residential properties.

-Business Insider