Deal or no deal?

[Nicole Williams]

Please help BP
I have a property in Detroit, MI on contract for $20,000. House has been vacant for over a year. House needs the basics:
-Plumbing (bath room and basement)
-Flooring (carpet, hardwood needs to be refinished)
-Paint
-Few holes fixed in the walls
-Sink and kitchen cabinets (rehabber ran out of money)
-Lawn maintenance
-Furnace
-Hot water tank.
-Some wiring

Pros: fireplace, the hardwood floors are really a jewel (once refinished, most houses have the vinyl flooring), new roof, and new siding.

I ran the numbers the ARV= $42,500 and the contractor said there is $15,000 needed in repairs. Still puts the buyer on top. Its close to the freeway and honestly its a decent neighborhood and could be a great cash flow property especially with the new plants opening in Detroit and the build of Downtown Detroit. Ive had this house for almost 44 days now? Ive had houses similar and it was no problem to unload in the 20l ballpark. My question is should I come down on the price, get another contract with the seller, or let my option contract expire?

[Patrick Snyder]

@Michael---It's only a matter of time before the city rebuilds, and when it happens, people who bought the thousand dollar houses will reap the rewards. The auto industry is making a big comeback and when Detroit makes the (necessary) economic adjustments, the progress will gain momentum. It's a cycle, like anything else. Pittsburgh went through similar troubles in the 80's, and now it's one of the bright spots in the housing market.