I want feedback. I am looking at buying property in Detroit, MI, you can get land for as little as 1$ and houses around 1000$. The ones im looking at are around$25000 and in very good to almost new condition. Does any one here live in or near there. I would think detroit would be booming again after the auto makers get into gear. That would bring people back and home prices up. What do you all think, Good idea or no. Thanks

shit if you have the cash why not!!! you could be a slum lord,,,lol just joking

__________________

Well, i dont have the cash. it would have to be a bank loan, But a payment of 150$ plus taxes wouldnt be that bad. It wouldnt take no 30 years to pay off, Well mabye.

If i had a chance to buy almost a new house for $ 25,000 i would do it in a heartbeat. I mean people spend $ 25.000 for a decent vehicle which is a really bad investment but ppl do it. But if i was you i would probably look for something around $ 10.000. Less profit down the road but smaller monthly payments. I have some family that lives in Detroit and they told me things are really bad down there right now.

__________________


Please don't PM me with fta related questions, they will no longer be answered.

What kind of investment is this, for yourself to live in or someone else?
Are you located near this investment, so you can keep an eye on tenant?
It doesn't take long for someone to destroy a property, if there is no control.
Can you afford to make payments, if the property is vacant for any length of time. Can you pay utilities and taxes if unrented. Can you pay for upkeep, or can you afford to have someone else do repairs, and still make payments. are you willing to evict renters if they fall behind in payments. Can you afford lawyers to remove unwanted tenants. Lots of things to consider before you make a large investment of this nature. Detroit's unemployment is expected to hit double digits in 2009. Insurance is another big investment.
Have you spoke to your banker about investments like this? Maybe should check into it further, before you make the leap!

Good point. It sounded good in my head.Im in WI, Mabey ill stick with a house a little closer to me.

Some very astute points made by Jetalito above.

I own some rental properties which are all a great distance from where I live. These are managed by professional property management companies. This situation is not cheap and the only thing that makes this a viable investment is that other investors purchased units in these buildings and use the same property manager so we get a discounted rate. If you are hiring a company to manage just one property the cost is too high.

I do not live near Michigan, but try to keep my finger on the pulse of the economy (I would have to say that I have not been doing a great job if predicting the future over the past year though...sigh) and I would have to advise holding off with any Detroit investment right now. The consensus is that 2009 is going to be just as bad as '08 or maybe even more painful! I am also not convinced that a buyout package is going to instantly cure the problems with the big three. If I were you I would hold off to see exactly how things paly out in 2009. When there are signs that things might turn around you will still be able to purchase a bargain priced property, and in all likelihood it will be even cheaper than today if there is more bloodletting with the auto industry.

By the way, my property values have been hurt too, but not like those in Cali State or FLA thankfully. I expect them to sink more in '09 but I got into these in the 90s with a long term horizon....at least 10+ years till I retire. I am also paying down the mtgs with some of my job income along with the rental cash flow. Wish I had just seen the stock market crash coming more clearly....sigh.

Bottom line is that now is not the time to be bold but rather to be careful, especially with borrowed funds...just remember that borrowed money is what started this whole mess in the first place.

Be careful out there.

CD

Another good point. Thats all i needed. I like to jump into things, and always end up loseing money. Mabey i will think about it again in a year or two. Thanks.

Nice to hear an opinion from somebody that knows what he is talking about.

__________________


Please don't PM me with fta related questions, they will no longer be answered.

been managing for over 20 years check out the location, location, location and crime rate contact the city police local gas stations ride the local bus and talk to the people in the aria.