34-year-old Chase C. Hunter, an African American real estate investor now owns about eight properties in Detroit, Michigan. She started out searching online for affordable properties. Originally from Houston, Texas, she was exploring budget-friendly investment options when Detroit caught her attention. She discovered the Detroit Land Bank Authority, which offered vacant, “as is” properties for as low as $1,000. This opportunity led Hunter to take a leap into Detroit’s real estate market.
According to an article published by Realtor.com, in June 2021, Hunter closed on her first two properties in Detroit, priced at $2,000 and $1,800. Remarkably, her first visit to the city was the day she finalized her purchases. Since then, she has expanded her portfolio to include eight properties. One of these homes serves as her office, while the others have been renovated and rented out. She permanently moved to Detroit last year to better manage her investments and establish a presence in the local market.Navigating Detroit’s real estate market has its challenges, especially for newcomers. Hunter stresses the importance of understanding the local culture and market dynamics. Recently licensed as a real estate agent, she’s now preparing to launch an investment group to help others buy and rehab Detroit properties. She believes Detroit’s real estate market is unique, with investors from across the U.S. eager to participate in the city’s ongoing revival.
Detroit has undergone a dramatic transformation since its 2013 bankruptcy, which was the largest municipal bankruptcy in U.S. history. Real estate prices hit rock bottom in 2009, with median home prices around $58,900, but values have since surged to $217,100 in 2023. By May 2024, the median home price had reached $250,000, according to Realtor.com® analysts, still significantly lower than the national average but indicative of a strong recovery.
While Detroit properties are often budget-friendly, turning a profit can be difficult due to the extensive rehabilitation many homes require. Hunter’s first $2,000 property needed $85,000 in renovations, while her $1,800 purchase cost $130,000 to restore. To streamline her process, she now focuses on homes in better condition, typically in the $80,000 range, where only minor cosmetic repairs are needed.
Crime remains a concern in some Detroit neighborhoods, but Hunter has adapted by investing in security and carefully selecting properties in areas she deems safe for families. She highlights communities like Morningside, Bagley, and Warrendale as promising investment spots. Her dedication to Detroit is reinforced by a close-knit community that values neighborhood watch efforts, making her feel supported and connected.
For Hunter, Detroit’s resilience and community spirit are inspiring. Her local network, which she now considers family, keeps her committed to the city’s real estate market, and she is optimistic about its future.
Those who are interested in buying distressed properties should start by searching online databases AffordableHousing.net
Also, be sure to follow Chase Hunter on Instagram and YouTube