BiggerPockets

Everytime I read something it seems like Detroit and most of Michigan for that factor has gotten worse and worse.. cheaper and cheaper.. Do you think this town will eventually rebound!? I know no one can say for sure, who knows, but what are your thoughts? Recently read this article http://www.dailyfinance.com/2009/11/17/detroit-stadium-or-new-york-studio-the-silverdome-sells-for-58/

That stadium sold for just over 1% of the orignal cost to build? Amazing. Sad. Seems like its almost too far gone to come back to me.
-Scott

Detroit has an excellent location for manufacturing businesses. But it's my understanding that there are problems with the local government not being friendly to business.

If they would go on an all-out program to attract and nurture business, the city could recover. Transportaion is a biggy for manufacturing, and Detroit can offer it.

But between the uncooperative government, the enormous welfare population, and the spoiled demanding workforce, I sure wouldn't locate a manufacturing plant there.

My opinion: they are going to learn to change, or they are going to die.

There are several things going for Detroit and many against it. According to the latest issue of Inc. Magazine, there is a revolution going on in Detroit (Actually Warren but close enough...) with the birth and development of the electric car and its components. This is across various manufacturers and models. Developed properly, it may change the way we look at the private transportation and could be the city's renaissance. However, many things going against it. Obscene property taxes, union stronghold, old and obsolete manufacturing base, decaying infrastructure, terrible weather, corrupt politicians, and the list goes on and on...

Oh, yea and one more thing I forgot. There are three huge movie studios being built around Pontiac and other part of the metropolitan Detroit. This is part of Michigan Film production tax incentives. I know many productions filmed in Michigan in the past year and there are crews training programs going on as well.

The Detroit metropolitan area has a population of over 5 million people. The population in the city of Detroit is under 1 million. There are some excellent areas within metro Detroit but every neighboring community is labeled "Detroit" by the national media.

The local government has been completely overhauled, so it will be intersting to see if there's a shift in their practices. If you are skeptical about the actual city of Detroit, I understand, but the suburbs provide a wealth of resources and opportunity.

I prefer investing in Detroit real estate. Peopl still need a place to live and there is a huge demand for nice affordable housing. Where else can you purchase and rehab for 20% ARV? If you have good property management and cash on hand you can make a killing in Detroit.

Don't know much about Detroit, except that its been in a declining state for quite sometime, and only seems to be getting worse. Useful post for anyone unfamiliar with the area. Thanks.

I agree with what has been said, but I still invest in Motown. In and around the area. I grew up there and still have family there. I have been successful with my investing there because I know what I am doing. With that said, there are many areas that will feel a DEEP depression like Detroit in 2010. Foreclosures keep rising and states loosing tons of revenue.

What is the solution? Well if you are an investor and a true one. You look at the opportunities and not the NEGATIVITY. I have been investing for over 8 yrs and all I have heard was not to, but if you do not invest in real estate what do you invest in the stock market, or your 401k so that they can take that from under you.

To me real estate will always be the number investment tool for creating wealth and CASH FLOW. But, it has to be done right. You can pick wherever you feel comfortable, but at the end of the day as long as you are happy and making money then you are on your way.

Detroit for me was a no brainer because prices and quality of the properties that I purchase. When I am in for 10-15k and getting $550-$650 no matter what the nay sayers say I SAY YES, YES AND YES.

SUCCESS BREEDS SUCCESS

Oh, I'm sure negotiation is always good anywhere, wether it's a high taxes state /city or not,but that is one thing I just don't have to deal with since the taxes where I buy, are so low .... :wink:

Mark, I think that it is really depend on the law in which the assessment goes by. In California, a property can go for years without being assessed because of proposition 13, which disallow arbitrary tax increase, therefore the taxes are determined if and when the property is sold. I l own in my house for 22 years, so my taxes are estimated based on a very old assessment. Consequently, they are much lower than the house down the block that was bought three years ago.
If the low allows the county to raise taxes based on the sale price, I'm sure the same law can and should apply when the sale show reduction of value in relation to the previous sale.