Flipping a House in Detroit: How to Find the Right Property

As one of America’s most dynamic real estate markets with tons of opportunities for redevelopment, Detroit continues to attract nationwide and international attention. Flipping a house in Detroit is a unique opportunity for investors and real estate enthusiasts looking for affordable entry points and attractive profit margins. But successful house flipping starts with the crucial step of finding the right property at the right price point.

At Rondo Investment, we specialize in helping our clients find investment properties that make financial sense. In this article, we’ll walk you through how to find the right property to flip in Metro Detroit, what to look out for, and how Rondo can be your partner from start to finish.

Why Flip Houses in Detroit?

Detroit has undergone a massive transformation over the last decade. While some neighborhoods are still recovering from economic downturns, many areas have seen significant investment, infrastructure upgrades, and community development.

One of the most attractive features of the Detroit real estate market is the low property prices that are far below the national average. In addition, there are several areas within Metro Detroit that offer tax benefits and grant programs for investors. These factors make it easier for newer investors to enter the market and maximize their profits.

As the city continues to revitalize, there’s growing demand for rental and resale homes. This demand not only makes it easier for house flippers to rent or sell their properties easily, but is also starting to drive the prices up for those who want to hold on to their investments for the longer term.

How to Find the Right Property in Metro Detroit

Step 1: Understand the Market

Before you buy a property, it’s essential to research the Detroit market. The city is made up of over 100 distinct neighborhoods, and conditions vary significantly from one block to the next.

Some Detroit neighborhoods offer better flip potential than others. Look for areas where property values are steadily increasing and new businesses and developments are opening. If you see visible signs of infrastructure investments in an area, that is a good indicator. Another statistic to look for is a downward trend in crime rates.

Popular neighborhoods for flipping a house in Detroit:

• Bagley
  
  
• Grandmont-Rosedale
  
  
• East English Village
  
  
• Morningside
  
  
• Northwest Detroit
  
  

These neighborhoods combine affordability with upward momentum, making them ideal for a flip.

Step 2: Know What to Look For in a Flip Property

The right flip property is one that balances cost, location, and repair needs. Some rehabbers prefer complete gut jobs, while others want cosmetic-only updates. Here are the top features to evaluate:

1. Purchase Price

Look for properties priced well below the average in the area, allowing you to budget for repairs and still make a profit. Rondo Investment can help you identify below-market homes that are prime for flipping.

2. Structure and Layout

Avoid properties with foundational or structural issues unless you have the experience and budget to handle them. Focus on homes with solid bones, functional layouts, and easy cosmetic upgrades.

3. Comparable Sales (Comps)

Check recently sold properties within a quarter-mile radius. These comps will give you an idea of how much your flipped home could sell for once renovated.

4. Repair Needs

Do a thorough walkthrough and estimate the cost of repairs. Be realistic. Factor in labor, permits, materials, inspections, and potential delays.

We provide investor-ready properties with full repair estimates so you can make informed decisions quickly.

Step 3: Budget for Your Flip

There are several factors to consider when coming up with your house flipping budget. One mistake made by newer flippers is not accounting for all the costs correctly. For example, some underestimate repairs or don’t calculate the time of ownership accurately and end up making additional loan and tax payments. All of these budgeting mistakes eat away at your profits. Make sure to account for all of the costs associated with purchasing, repairing, and selling the property. Consider the purchase price, repair costs, cost of ownership, and other costs associated with the sale. When you have a good estimate of what the house will be worth after the flip, all of the costs plus your purchase price added up should still yield you a healthy profit margin.

At Rondo Investment, we assist our clients with detailed financial projections, so you’re never left guessing. Our extensive experience and data-driven approach removes guesswork out of the equation when it comes to flipping houses in Detroit.

Step 4: Secure Financing

Flipping houses in Detroit often requires quick financing to secure deals before they’re off the market. Investors typically use one of the following options:

• • Cash: Fast and flexible, but requires capital upfront.

• Conventional loan: Longer-term financing that typically requires a 20-25% down payment.

• Hard money loans: Short-term financing that’s ideal for flips.
• Private lenders: Investors or institutions that offer competitive terms.
  
  

Having financing ready to go makes your offers stronger and speeds up the closing process. For more information about financing options, read our article on the topic.

Step 5: Find the Right Professionals

A successful flip requires a team of professionals. Your flip team should include trustworthy contractors, a trusted real estate agent for purchasing and selling, a home inspector, and a property manager (if you plan on leasing the home).

Rondo Investment has long-standing relationships with vetted contractors, inspectors, and legal professionals. Whether you’re local or out of state, we can help you build a team that gets the job done efficiently.

Step 6: Renovate with the End Buyer in Mind

One of the most challenging parts of flipping a house is staying within the renovation budget. Knowing what to spend the money on and where to stop requires experience and market knowledge. Focus on the improvements that will appeal to local buyers and give you the best return. Typically, the kitchen and bathrooms are the biggest selling points in a home. Adding some curb appeal and keeping the finishes neutral and fresh is your best bet in appealing to the masses.

Step 7: Sell Smart

Once the renovation is complete, list the home at a competitive price based on comps. Be prepared to stage the home and have professional photos taken. Hiring an experienced real estate agent will help you maximize the home’s marketing exposure, reaching many different types of buyers.

Rondo Investment is Your Partner for Flipping a House in Detroit

With over 30 years of experience in Detroit real estate, Rondo Investment is uniquely positioned to help new and experienced house flippers succeed. We have a team of agents, contractors, and property managers who are ready to help you identify the best opportunities in Metro Detroit and complete your renovations within your budget and timeline. Whether you’re flipping your first house or your fiftieth, Rondo can help you minimize risk and maximize return. Visit our website to learn more and schedule a consultation.