We have heard about the situation in regards to Detroit real estate. It’s bad, really bad. I even wrote a post on the subject about two months ago titled “Is Buying Real Estate in Detroit a Good Idea“. Along with that post was information on individuals and companies pouncing on Detroit to scoop up some really good real estate deals in bulk. Well I wanted to see how many homes could really be purchased for $50,000 and the results blew me away.
Now I live in the Bay Area so maybe my real estate knowledge is forever skewed. But going into this I did have a little knowledge about the Detroit real estate market. In the post mentioned above, I knew the median price in Detroit had dropped to a minuscule $7500 for December 2008. So if you do the quick math in your head you can figure you might be able to pick up six or seven homes for the $50,000 I mentioned. But was I shocked when I looked at Roost.com under the MLS listings starting at the lowest priced home that I could purchase and found I could get an astonishing 98 homes for $50,095.
Now I do want to be totally up front about those 98 homes. First of all, at least two that I saw were just raw land and the cheapest (a mere $1) was contingent on bringing the back taxes up to date. There was no mention of that amount. But even with that type of information, I was still amazed that you would be able to pick up that many homes for around $50,000.
If you’re interested in buying real estate in Detroit, click Detroit, MI Homes For Sale and MLS Listings.
I’m sorry, but I don’t quite see the point of this post. I mean, are you just making fun of Detroit, or are you looking for a partner to invest there? What is the purpose of the post? Are you trying to help the city, people and real estate agents in that area?
I apologize Kwame if you thought the angle on this post was taking a jab at Detroit. It was in no way intended to make fun of the city at all. We have broker partners in the city and we would never do that. We were only trying to bring people up to speed in regards to the low cost of properties in the Detroit area.
If ifnoarmtoin were soccer, this would be a goooooal!
I like your post and it’s give some basic idea to buy a property in Detroit city.
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In 2008 nearly 56,000 bank repossessions were reported in Michigan, according to statistics reported by a foreclosure tracking website. Some analysts are predicting the number of foreclosures in that state will begin leveling out by the end of 2009. The time to invest in Michigan foreclosed real estate is now. While housing prices in Detroit continue on a downward slide, there is evidence the declines are beginning to slow, but the homes are still losing value. Buyhomesdetroit.com has foreclosed properties available not only in Detroit, but in the fashionable suburbs as well.
I like the post very much, I see an opportunity to create a feast. In times of famine someone will always feast. As Warren Buffet stated “Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors”. This is the opportunity of a lifetime for some and others will look back and wonder what happened. I'm actively in the market buying and selling and working with investors all around the globe that are excited about the opportunities in the Metro Detroit market.
http:www.michiganpropertyvirgins.blogspot.com
I agree with you that this looks like a great time to purchase for both owner occupied as well as investors. In a city like Detroit where you can literally pay cash for a home, it my be perfect for the first-time investor. We probably won't see the crazy appreciation we saw in the past but it could be a solid long-term investment opportunity.
Derek Overbey
Sr. Director of Marketing and Social Media
Roost.com
Unfortunately, the down side of market correction always leaves casualties in it's wake, but on the positive side people that were once forced out of jumping on to the real estate ladder now have a fantastic opportunity to invest and grow with the new market.
The Nashville real estate market did not have the 200% increases in equity seen in other parts of the country so the drop has not been so dramatic but still the regression back to 2006 prices has opened up the real estate market to lots of potential home buyers again.
I was introduced to a reputable company buying large pools of bank owned properties in Detroit at 20 cents on the dollar, reburbishing them, and then selling them at 45 cents on the dollar with an end-tennant in place, giving about $600/mo positive cash flow, or if you want to “flip” it, with an end-buyer in place. Check it out here: http://www.meetup.com/Flip-REOs-w-End-Buyer-alr… (copy and paste to your url browser)
I was introduced to a reputable company buying large pools of bank owned properties in Detroit at 20 cents on the dollar, reburbishing them, and then selling them at 45 cents on the dollar with an end-tennant in place, giving about $600/mo positive cash flow, or if you want to “flip” it, with an end-buyer in place. Check it out here: http://www.meetup.com/Flip-REOs-w-End-Buyer-alr… (copy and paste to your url browser)
hi im from the uk and i agree, comments like that are hurtful to the residents and the area in general, we are looking to invest in detroit, one as an investment and two to help the residents via lower rental agreements and hopefully with the governments help,