Renewing and rejuvenating properties in Detroit—especially older or vacant buildings—can be a rewarding investment. Detroit has seen a revitalization wave in recent years, and the city actively supports property restoration efforts. Here’s a step-by-step guide:
🏚️ 1. Find the Right Property
💡 Look for:
- City-owned properties via the Detroit Land Bank Authority (DLBA): buildingdetroit.org
- Foreclosures or tax-reverted properties
- Privately owned distressed homes
🔎 Tools:
- Zillow, Redfin
- Detroit Parcel Viewer
- Real estate wholesalers
📋 2. Do Your Due Diligence
🛠️ Assess:
- Title issues
- Back taxes or liens
- Structural condition (foundation, roof, utilities)
- Historical designation (may affect renovations)
💡 Tip: Hire a local contractor or home inspector with Detroit experience.
📝 3. Make a Renovation Plan
Include:
- Scope of work (roof, plumbing, electrical, etc.)
- Estimated costs
- Permits needed from the Detroit Buildings, Safety Engineering and Environmental Department (BSEED)
- Timeline
💰 4. Get Financing for Restoration
🚀 Options:
A. Detroit-Specific Loan & Grant Programs
- Detroit Home Repair Fund
- Grants up to $25K for eligible homeowners in Detroit zip codes.
- detroithomerepairfund.org
- Detroit Land Bank Rehabbed & Ready Program
- Purchase + renovation support for homes via the DLBA.
- buildingdetroit.org
- Gilbert Family Foundation / Rocket Mortgage Detroit Initiatives
- Grants and loans for home repair or neighborhood stabilization.
- gilbertfamilyfoundation.org
- Motor City Match
- For commercial properties but offers restoration support.
- motorcitymatch.com
B. Traditional Lending (With a Twist)
- FHA 203(k) Loans
- Federally backed loan to purchase and rehab properties.
- Low down payment (3.5%)
- Requires licensed contractors and work quotes
- Fannie Mae HomeStyle Renovation Loan
- Conventional loan that includes renovation costs.
- Can be used for investment or owner-occupied
- Credit Unions & Community Banks in Detroit
- Look into Liberty Bank, Huntington Bank, or Detroit Credit Union
- They may offer rehab-friendly or flexible loans
📑 5. Get the Permits and Start Work
- Apply through BSEED (Detroit Building Department)
- Follow all zoning codes and inspection schedules
- Use licensed contractors for electrical, plumbing, HVAC
🧱 6. Restore, Insure, and Secure
- Once renovations begin:
- Keep property secured and insured
- Install utilities early (gas, water, electric)
- Document everything (photos, receipts, permits)
🔁 7. Consider Long-Term Use
- Rent or sell? AirBnB? Hold for appreciation?
- Look into tax abatements like:
- Neighborhood Enterprise Zone (NEZ)
- Obsolete Property Rehabilitation Act (OPRA)
✨ Pro Tips:
- Partner with nonprofits like Detroit Future City, Develop Detroit, or Bridging Communities.
- Use local contractors who know city code and have rehab experience.
- Apply for historic preservation tax credits if the property qualifies.
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