All Forum Posts by: Richard Dunlop

I bought the first property in Detroit the end of 2008 and Detroit at that time  was already at the bottom because of many factors stretching back decades.

The nationwide housing crash was only the last of several factors and the banks had houses that they were selling with a warranty deed all taxes paid for $100-$1000 and they had 1000s of them. I had been researching properties for 1 year before I decided there was no place better than Detroit.

One of the things that amazed me was I would pull up Craigslist for Detroit and Craigslist for Long Beach California (one of the other areas I was watching) Houses that were selling full retail for $400,000 in LB CA would rent for $1400-$1500. 

 Houses that were selling full retail for $10,000 in Detroit would rent for $650! And there were lots of opportunities to buy for way less than retail. My first purchase was a 2 unit for $1500 rent for $900 (2x$450)

In Detroit suburbs houses that would sell full retail for $20,000 would rent for $875.

"Let me see if I buy (20) houses for $20,000 each instead of (1) for $400,000.00 which strategy will survive the downturn."

 I'm not sure why you would say "Not much appreciation" Detroit hit a multi decade low about 2011. (the nationwide housing crash was only the last straw)  

Since then it has been appreciating better than anywhere else. I expect property values to continue appreciating rapidly for the next 10 years as Detroit is completely rebuilding as a city that is not depending on the auto industry. (The US government has more employees in Detroit today than GM)

Cash Flow AND Appreciation are both better than ANYWHERE else!

I bought it in December of 2015 he bought it in 2013.

NorthWest Detroit

 As @Saul L. said be careful in Detroit.  I absolutely recommend Detroit but there are lots of pitfalls to avoid.

This house was bought by an investor in the UK for $83,000

I bought it from his foreclosure for about $2000.(Yes $2000)

Which way would you rather be investing in Detroit?

The assessed value in Michigan is supposed to be one half of fair market value.   The local communities will usually say no. But then when it comes up to the Michigan Tax Tribunal they often will call you up and offer to negotiate at that stage before the hearing.

You asked about Detroit.

Total cost all inclusive including purchase, repairs, and painting will be about $7000-$8000.

It will rent for $825-$850. 4 Bedroom Dining room Sun room and 2 car garage!

The cash flow is better than anywhere else AND the Appreciation is second to none. But I don't recommend the Turn Key type of investing.

Welcome to BP you're in the greatest market anywhere. 

I truly believe Detroit and Detroit suburbs are virtually immune from the next downturn. So don't wait too long.

Detroit and Detroit suburbs have phenomenal opportunities better than anywhere but lots of land mines also so tread carefully.

I always enjoy the rants from previous Detroiters.

I wonder why properties in my neighborhood have gone up about 500% in the past 6 years? We used to laugh at the Zillow estimates as being way to high, now properties are selling for 3 X the Zillow estimate. 

I thought I answered all of the critics here but I guess I missed a few!

Did you know that Wayne(Detroit) county Average weekly wage is way above national average and growing faster than the national average, 3.1%.

Figures are from a link in this thread

Harris (Houston)county is also way higher than national average but growing way slower than the average, 0.1%. Maybe you could learn from your years in Detroit and pick a community not too dependent on one industry.