detroit now (Wayne, Holly: section 8, sales, real estate)

[landcruiserjohnb]

Hi Guys
I live in Ireland and as such I dont know anything about your city and would like a bit of help.
The experts are you who live in Detroit
I would like to invest in some houses in America to rent out.
lately there is a big push to buy houses in Detroit by estate agents on the web.
Properties are cheap and already have tenants in, so the potential is there to break even or make a little.
But I have been doing some research and it would seem that Detroit has bad areas with a lot of decline and good areas where prople look out for each other, homes are maintained and tenants will stay.
But I only have the sales talk from the realtor to go on and he wants to sell, then its my problem then its my problem after that.
Is it a good time to invest in a house or houses in Detroit to rent out.
Do you think tenants will stay.
What are the areas to avoid and the areas to look at.
How can I tell if areas are good or bad by their zip code/ street name etc.
Do property taxes determine a good area or just the price of the property.
Do any of you know any sites for futher information or research.
Its just Ireland is a half a world away and so different.
thanks in advance

[ForStarters]

Unless you are a seasoned real estate investor in the U.S., I would think it wise to do a lot of research on this subject before jumping in head-first. A basic knowledge of how Michigan real estate transactions work, an understanding of Section 8 housing subsidies, and a familiarity with things such as financing, property taxes, property inspections, city codes, easements, covenants on land, and of course, lease agreements, is critical if you are to be successful.

You are correct that (1) property in Detroit is cheap, and (2) there are both good and bad areas. Keep in mind that Detroit property is cheap for a reason. There are many investors within the Detroit area who would be buying this property up if it were a good investment. Selecting a "good" area in Detroit is more difficult than looking at particular streets and particular ZIP codes. More often than not, residential areas in Detroit change drastically block-by-block. There is no generic answer to your question, and actual knowledge of specific neighborhoods would give you much better insight.

To make a good investment, you should know the quality of the particular schools serving the property's jurisdiction. You should also be aware of what type of retail is nearby, and the stability of the area's major employer. Consider the property's proximity to Wayne State or University of Detroit Mercy, or other major city/state institutions or businesses. Also, look at things like whether nearby homes have been deemed "historical". Most importantly, look for properties that are surrounded by other well-maintained properties. If you are in an area where blight is setting in, it can be a sign that the neighborhood is terminally ill.

I would suggest you make a visit to Detroit and meet with a RE agent knowledgeable about Detroit property. Walk the specific neighborhoods you are interested in purchasing property in. There is redevelopment happening in Detroit in certain core areas, but broadly, many neighborhoods are beyond repair in my opinion. To make a good investment, you need to do more than buy a group of run-down houses in a blighted area on the cheap- that won't work. Select one or two decent properties in strong neighborhoods and see what happens. A few sources have reported that Detroit will see RE prices rebound faster than other places, but I'm sure location will be key.

Good Luck!

EDIT: You would receive more useful input from this forum if you have specific areas in mind. It is too difficult to point you in any specific direction without knowing more about the type of investment you want to make.

[detroitlove]

in all honesty this the wrong forum to ask anything about Detroit unless you're trying to bash it. Most of the people on here either live in the suburbs or in a whole different state. If you really want to know about investing here there is a guy on youtube that know a lot about it. His page name is proshea01. He does a lot of videos for people all over in areas around the city showing the homes and neighborhoods they are interested in.

[Retroit]

I hear there are a lot of shamrocks in Ireland. Do you think it would be a good idea for me to buy a shamrock farm there and import the shamrocks to Detroit so we could have good luck?

[landcruiserjohnb]

Hi Guys
Thanks for your imput, I do appreciate it.
I know if I had more percise info on where I am looking it would help.
But I dont, there is so much property available now cheap that it would not be possible to norrow it down by myself.
I was hoping that I would get a feel for areas to avoid.
The realtors only show the nice house all done up and clean but not the street or other streets near by.
So all I have to go on is this nice looking house because it has just been revamped and the realtors sales pitch.
So not much really to decide on before spending money.
I can say I am looking for a property investment that will return monthly positive cash over a long period of time.
So thats why I am looking at buying a house to rent out .
The property web sites only give the positive about the investment and not the information that is possibly needed.
I want an area where tenants will stay because its nice to live in with low or no vandalism and crime rate.
Maybe im asking for too much but I just thought the local people would know more.
thanks

[fmax]

landcruiserjohnb,

I'll help you out in trade. Since you don't know how to use Google Maps, I'll take pictures of any surrounding area of any Detroit address you request.

All I ask, how many Leprechauns do you have and will you give me one in trade for the assist?

[fmax]

landcruiserjohnb,

And no tricks. I'd like a nice, pleasant Leprechaun - no Hollywood type axe-wielding Leprechauns. No violent leprechauns are wanted here in The States.

[zthatzmanz28]

Remember the old lesson--

Buy a house for $500.

another $10K--$20K to make it liveable

Pay $3500--$5000 annual tax

Rent it for $500-$800 (higher if you deal with section 8)

Payout $3000--$6000 annual maintenance after the renters and neighborhood theives get the copper and aluminum

another $2000 annual insurance

Gross $6000--$10,000 in rent

NET GAIN ZERO into RED INK losses.

Come on over to Detroit, I have friends in the real estate business that will sell you all the $500--$2500 homes you want...They also have some in the $50K--$350K range...

[fmax]

landcruiserjohnb,

Detroit has a strong sense of community. Ask yourself, would 300 people help a woman in your area?

Community credited for arrests in rape of Detroit woman, 90

"They were Detroit residents, some 300 strong, fed up with crime in their neighborhood. The last straw was the rape of a 90-year-old woman, and they vowed last week to do something about it."


[LEFT]
From The Detroit News: Community credited for arrests in rape of Detroit woman, 90 | detnews.com | The Detroit News (http://www.detnews.com/article/20100830/METRO/8300397/1361/Community-credited-for-arrests-in-rape-of-Detroit-woman--90#ixzz0yDZtsTmP - broken link)
[/LEFT]

[fmax]

landcruiserjohnb,

And where else in the world can you find spare body parts - free - near an Open-Air Market?


Investigation: Body parts found near Eastern Market are from a male

"Investigators believe body parts found in an east-side field belonged to a man, and are working to determine the victim's identity. Police on Monday recovered at least one dismembered arm and a leg in a field on Hale Street near Eastern Market, after a neighbor called 911 to report the gruesome discovery. Late Monday, investigators found a torso nearby, wrapped in a blanket.

A right arm also was recovered with the hand intact; it appeared to have been severed near the bicep, sources said."

Investigation: Body parts found near Eastern Market are from a male | detnews.com | The Detroit News (http://www.detnews.com/article/20100831/METRO01/8310419/1361/Investigation--Body-parts-found-near-Eastern-Market-are-from-a-male - broken link)