Investment Opportunity in Detroit: Quadplex Redevelopment at 9611 Otsego St

Detroit continues to attract real estate investors seeking long-term growth, affordable entry points, and opportunities to revitalize historic neighborhoods. One such opportunity is located at 9611 Otsego Street, Detroit, MI 48204, a brick quadplex offered at an attractive price of $15,000.

Situated in the Nardin Park neighborhood, this property presents a compelling redevelopment project for experienced investors, developers, or buyers prepared to undertake a full rehabilitation.

Property Overview

The subject property is a brick quadplex zoned R2, making it suitable for multi-family residential use. The building consists of four residential units, collectively offering:

Bedrooms: 4 total

Bathrooms: 4 full bathrooms (1 per unit)

This layout aligns well with Detroit’s growing demand for affordable rental housing, particularly among working professionals, small families, and long-term tenants seeking stable housing in established neighborhoods.

The structure requires a full rehabilitation, providing a blank slate for investors to modernize the units, upgrade systems, and maximize rental income potential. While this is not a turnkey opportunity, the low acquisition cost allows for flexibility in budgeting and redevelopment strategy.

Neighborhood: Nardin Park

Nardin Park is a well-known neighborhood in northwest Detroit, valued for its tree-lined streets, brick housing stock, and strong sense of community. The area has seen ongoing reinvestment, with homeowners, investors, and city-led initiatives contributing to gradual stabilization and growth.

Key advantages of the Nardin Park neighborhood include:

Proximity to major roadways and commuter routes

Access to local schools, parks, and neighborhood amenities

Predominantly residential character with strong rental demand

Presence of other multi-family and brick residential properties

For investors, Nardin Park represents a balance between affordability and long-term appreciation potential.

Development and Rehab Requirements

This property is being sold through the Detroit Land Bank Authority (DLBA), and as such, buyers must comply with specific purchase and redevelopment requirements.

A proposal to purchase is mandatory, and it must include:

Detailed rehabilitation plans

Scope of work

Timeline for completion

Planned unit layouts and upgrades

Financing plan

Proof of Funds or

Pre-approval letter for a new construction or rehab loan

These requirements ensure that the selected purchaser has both the intent and the capacity to complete the redevelopment in a timely and responsible manner.

Tax Capture Considerations

One of the most important aspects of this opportunity is the DLBA tax capture provision. Upon transfer of ownership, the DLBA is entitled to a tax capture for five (5) years following the sale.

Key points to understand:

The tax capture may conflict with certain tax abatements that would otherwise be available to the buyer.

DLBA will review requests to waive tax capture rights on a case-by-case basis.

Approval may require a Payment in Lieu of Taxes (PILOT).

The payment amount is determined after reviewing the development proforma and assessing how tax abatements impact project financing.

This makes it especially important for investors to carefully model operating expenses, projected rents, and long-term returns. While tax capture can affect short-term cash flow, it does not eliminate the overall value of the opportunity—particularly for investors focused on long-term appreciation and portfolio growth.

Financial Potential

At a purchase price of $15,000, the property offers an exceptionally low basis for entry into Detroit’s multi-family market. While a full rehab will require significant capital, the potential upside includes:

Increased asset value post-renovation

Stabilized rental income from four units

Long-term appreciation in a revitalizing neighborhood

Eligibility for financing options designed for redevelopment projects

Once rehabilitated, quadplex properties in similar Detroit neighborhoods often generate consistent rental income, especially when units are modernized with updated kitchens, bathrooms, mechanical systems, and energy-efficient features.

Ideal Buyer Profile

This opportunity is best suited for:

Experienced real estate investors

Developers familiar with municipal requirements

Buyers comfortable working with DLBA processes

Investors with access to rehab or construction financing

First-time investors may still consider this property, but only with strong professional support, including contractors, lenders, and legal advisors experienced in Detroit redevelopment projects.

Important Disclosures

The property is sold as-is, and buyers should perform their own due diligence. BATVAI (Buyer’s Agent to Verify All Information) applies. Interested parties should carefully review all attached DLBA documents, including offer submission instructions, redevelopment requirements, and compliance timelines.

Conclusion

The quadplex at 9611 Otsego St represents a classic Detroit redevelopment opportunity: low acquisition cost, solid brick construction, multi-family zoning, and location within an established neighborhood. While the project requires full rehabilitation and compliance with DLBA guidelines, it offers significant upside for the right investor.

For buyers prepared to submit a detailed proposal, secure financing, and navigate tax capture considerations, this property can become a valuable long-term asset in one of Detroit’s steadily improving residential areas.

FROM ZILLOW

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