Where to Invest in Detroit: How Ashley Hamilton Generates $50K+ Per Month

On The Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, we sat down with Ashley Hamilton, a Detroit-based real estate investor, entrepreneur, and single mom who built a rental portfolio generating over $50,000 per month in passive income.

Ashley’s story is proof that you don’t need a big inheritance, a real estate license, or perfect credit to build wealth — you just need persistence and the right strategy.

In this episode, Ashley breaks down how she went from working as a home health aide to becoming one of Detroit’s most respected affordable housing investors. She shares her step-by-step approach to evaluating deals, managing Section 8 tenants, and identifying neighborhoods that deliver consistent cash flow even in tough markets.

For anyone looking to invest in Detroit, this conversation is a masterclass in grit, discipline, and long-term thinking.

Why Detroit is Still One of the Best Markets for Real Estate Investors

Detroit has one of the most misunderstood real estate markets in America. Many outside investors still picture abandoned homes and empty factories, but Ashley explains that Detroit today is a market full of renewal and opportunity.

“Detroit has been counted out so many times,” Ashley said. “But the people here are resilient, and the rental demand is real.”

She emphasized that affordable housing investors thrive here because the numbers make sense:

• Entry prices are low, often under $100,000 for single-family homes.
  
  

• Rental demand is consistent thanks to Section 8 and working-class tenants.
  
  

• The city is actively investing in infrastructure, blight removal, and new developments.
  
  

For investors who want stable returns, Detroit offers a rare mix of cash flow and social impact — helping families while building generational wealth.

What Neighborhoods in Detroit Offer the Best Returns for Affordable Housing?

Ashley shared that her best-performing properties are often found in blue-collar neighborhoods — areas where people work in logistics, healthcare, or local manufacturing.

She focuses on zip codes where:

• The schools are improving, not perfect.
  
  

• Vacant homes are limited, but prices remain affordable.
  
  

• City services are consistent (trash pickup, utilities, etc.).
  
  

“I don’t chase the fancy zip codes,” she explained. “I invest where regular working families want to live, where there’s pride in the community.”

She cautioned new investors to avoid chasing low prices blindly. Some properties look cheap but sit in areas with high crime, vandalism, or long vacancies.

Her golden rule: If you wouldn’t feel safe collecting rent there, it’s not a deal.

How Ashley Evaluates Deals and Rehab Costs in Detroit

Ashley’s deal evaluation process is simple but powerful. She starts with the numbers — purchase price, rehab cost, rent potential, and exit strategy — but always factors in Detroit’s unique renovation challenges.

“In Detroit, your rehab budget can swing by $20,000 depending on who you hire,” she said.

Here’s her framework:

Real Estate Rehab Cost Estimates

• 1. Light Rehab

  • Typical Range: $15,000 – $25,000

  • Scope: Paint, flooring, minor updates.

• 2. Full Rehab

  • Typical Range: $40,000 – $60,000+

  • Scope: Major systems (New roof, HVAC, plumbing, electrical).

• 3. Down-to-Studs Rebuild

  • Typical Range: $80,000 – $120,000+

  • Scope: Full demolition and rebuild. Common in older, heavily distressed properties (e.g., Detroit).

She often self-manages rehab crews, walking every project and tracking costs with a simple spreadsheet.

Ashley also prioritizes durability over design. “I don’t need granite counters,” she said. “I need flooring that lasts and paint that hides scuffs. That’s what keeps tenants happy and turnover low.”

How Section 8 Helps Create Stability for Landlords

For Ashley, the Section 8 Housing Choice Voucher program is not just a rent source — it’s a key to stability.

“Section 8 changed my life,” she said. “When you treat your tenants right, they stay for years, and the rent hits your account every month like clockwork.”

Detroit’s Housing Commission has streamlined its inspection process, making it easier for landlords who maintain their properties to pass compliance quickly.

Her Section 8 success tips:

• Keep your property clean and compliant from day one.
  
  

• Build relationships with inspectors.
  
  

• Communicate respectfully with tenants and case managers.
  
  

• Stay consistent with repairs and follow-up visits.
  
  

For affordable housing investors, this approach turns the stigma around Section 8 into a long-term competitive advantage.

How to Build a $50K/Month Portfolio from Scratch

Ashley didn’t start with capital — she started with creativity.

She bought her first few homes using FHA loans, seller financing, and reinvested profits. Each time a property was stabilized, she refinanced and rolled the equity into another deal.

“I didn’t buy 20 houses at once,” she said. “I bought one, learned from it, and used it to buy the next one.”

Over the years, she scaled to over 40 units — mostly single-family homes and small multifamily properties. By focusing on affordable rents, reliable tenants, and low turnover, her cash flow snowballed into over $50,000 per month.

She now mentors other investors to do the same through her platform, Detroit Property Club, teaching that discipline and patience beat speculation every time.

Key Insights & Frameworks

• Start small, but stay consistent. Build one successful property before scaling.
  
  

• Focus on real demand. Working families and Section 8 tenants are Detroit’s foundation.
  
  

• Rehab smart. Durable materials and reliable contractors matter more than aesthetics.
  
  

• Buy in stable, not flashy, areas. Blue-collar neighborhoods outperform hype zones.
  
  

• Refinance strategically. Use equity to grow your portfolio without overleveraging.
  
  

Best Quotes from Ashley Hamilton

“You don’t need a million dollars to start. You need a million dollars’ worth of discipline.”

“Section 8 is not a shortcut. It’s a system — and if you learn it, it pays you for life.”

“If you wouldn’t feel safe collecting rent there, it’s not a deal.”

“Detroit is where real investors are made. You can’t fake it here.”

“Your reputation with inspectors and tenants is your biggest asset.”

Common Questions About Detroit Real Estate Investing

Q1. Is Detroit still a good place to invest in 2025?
Yes. Detroit remains one of the most cash-flow-friendly markets in the U.S. thanks to low entry costs, high rental demand, and growing revitalization zones.

Q2. How much do homes typically cost in Detroit?
Single-family homes often range from $60,000 to $150,000, depending on location and rehab level. Investors can still find deals under $100,000 in emerging neighborhoods.

Q3. How much rent can I charge for Section 8 tenants in Detroit?
Most 3-bedroom homes rent between $1,400 and $1,800 per month, depending on condition and neighborhood.

Q4. What are the biggest risks in Detroit real estate?
Poor contractor work, overpaying for distressed homes, and ignoring neighborhood safety. Always inspect properties and verify comps carefully.

Q5. How long does it take to scale a portfolio like Ashley’s?
It depends on your capital and consistency. Ashley grew her $50K/month portfolio over several years by reinvesting cash flow and using creative financing.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. Through conversations like this with investors like Ashley Hamilton, he helps others learn how to build wealth and impact through affordable housing.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.