Detroit, Michigan
Detroit is a market full of opportunity for real estate investors.
Known for its affordability and strong rental demand, the city offers some of the best entry points in the U.S. for building long-term cash flow.
With ongoing revitalization projects, a growing tech and mobility sector, and steady demand for quality housing, Detroit continues to attract investors looking for high yields and future appreciation.
At Greenroads, we focus on finding the right neighborhoods, negotiating smart deals, and adding value through renovations to maximize returns for our clients.
Why Detroit
Detroit: Cash Flow + Revitalization​
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Affordability: Entry prices are among the lowest in major U.S. cities, making it easier to build a portfolio.
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Rental demand: Steady demand for affordable housing keeps occupancy high, especially in working-class neighborhoods.
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Revitalization projects: Downtown and Midtown continue to attract investment, with ongoing developments in tech, healthcare, and mobility sectors.
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High yields: Gross rental yields often outperform other Midwest markets, giving investors strong cash flow from day one.
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Strategic location: Detroit’s proximity to Canada and its position as a logistics/automotive hub support long-term economic resilience.
Risks
Neighborhood variability: Returns and tenant quality can vary widely from block to block—knowing where to buy is crucial.
Population decline: While some areas are stabilizing, overall population numbers have trended down long term.
Property condition: Many homes need renovations, which can add cost and complexity if not managed well.
This is an example deal with real numbers: Coyle Detroit,
This is an example deal with real numbers: Arcade Ave, Cleveland, OHProperty Type: DuplexNeighborhood Grade (subjective): C+
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Deal Overview 2 (Detroit – Single Family)
Purchase Price: $130,000
Financing (60% LTV example):
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Loan Amount: $78,000
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Down Payment: $52,000
Closing Costs (est.):
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Lender origination (1%): $780
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Appraisal: $500
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Title search & insurance: $1,500
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Escrow/closing: $1,200
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GRS fee (min): €10,000 ≈ $11,000
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Total Closing Costs ≈ $15,000
Other Upfront Costs:
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Furniture: $6,000
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Renovation: $0
Total Capital Required (Cash Needed):
≈ $73,000 (~€67,000)
Income:
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Rent: $1,500/month = $18,000/year
Operating Expenses (annual est.):
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Property Management (10%): $1,800
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Vacancy (8%): $1,440
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Repairs/CapEx (10%): $1,800
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Property Taxes: $2,000
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Insurance: $1,200
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Total OpEx ≈ $8,240
Net Operating Income (NOI):
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$18,000 – $8,240 = $9,760
Financing:
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Annual Mortgage Payment (7% over 30 yrs): ~$6,225
Results
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Gross ROI: 13.8% ($18,000 ÷ $130,000)
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Cap Rate: 7.5% (NOI ÷ Purchase Price)
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Annual Cash Flow: ≈ $3,535
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Monthly Cash Flow: ≈ $295
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Cash-on-Cash Return: ~4.8% ($3,535 ÷ $73,000)
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Final thoughts
Detroit: Lower buy-in with strong cash flow potential, backed by ongoing revitalization projects.
It’s one of the most affordable major cities in the U.S., which makes entry easy and yields attractive. The trade-off is that appreciation is slower and neighborhood quality can vary a lot, so local knowledge is key.
For me, Detroit works best as a cash flow play: steady rental income today with selective upside in areas seeing long-term investment. Pairing Detroit with a growth market like Columbus gives a balanced Midwest portfolio — one side for cash flow, the other for stability and appreciation.