Detriot Homes Selling for $1 (Detroit, Southfield: for sale, real estate, rental)

[bayarea-girl]

I live in CA and am very tempted to buy in Detriot for the rental potential. What is up with the homes for sale for under $10K are they legitimate? I don't mind fixing up things (the place a be a dump, but hopefully in a good neighborhood). What are the taxes, I hear you guys have very high taxes. Are homes being re-assessed for the current market value? What does ACR stand for? Since the job market is slow can the places really be rented out? Is the city dead? What is Detroit doing about the economic situation? Do you think things will turn around in the next 5 to 10 years? What zip codes would be the best investments (zip codes are more helpful so that I can look them up easily online).

Thanks for the info.

[bayarea-girl]

Also, is it a scam for the listing agents to collect an EMD before actually accepting the offer? I've noticed a lot of listing agents requesting this and some are asking for a cashier's check.

Thanks again.

[zakian]

Originally Posted by bayarea-girl

I live in CA and am very tempted to buy in Detriot for the rental potential. What is up with the homes for sale for under $10K are they legitimate? I don't mind fixing up things (the place a be a dump, but hopefully in a good neighborhood). What are the taxes, I hear you guys have very high taxes. Are homes being re-assessed for the current market value? What does ACR stand for? Since the job market is slow can the places really be rented out? Is the city dead? What is Detroit doing about the economic situation? Do you think things will turn around in the next 5 to 10 years? What zip codes would be the best investments (zip codes are more helpful so that I can look them up easily online).

Thanks for the info.

This has turned into scam city.
You want a piece of Land? Look in Colorado.
Get a clue.
QUIT looking for cheap.

[bayarea-girl]

zakian, what do you mean that Detroit has turned into scam city? Everyone looks for cheap, why pay more when you don't have to? I just wanted to get the inside scoop on what is going on. If you can and don't mind could you elaborate? What I've been reading in the paper has been that so many people from other countries and people in California are buying up Detriot property because it is so cheap. And I have to admit I saw places for $250 and just couldn't believe it. So maybe it is too good to be true I just wanted to get the inside scoop from locals.

[ocean2026]

bay area do your homework and read the past posts about cheap houses. A house that sells for $5000 may have annual taxes of $7000- RESEARCH!

[Coldjensens]

The houses that sell for $1 usually have some back taxes owed on them. Some have windows, some do not. Some have plumbing and wiring, some have had it all ripped out of the walls. IF the house is sitting empty, make certain that you have seen it recently. People will steal everything even the bricks from the foundations.

I think that someone could do well long terms by buying up a bunch of cheap homes in the same area, fixing them up a bit, and finding some decent tenants. The problem is that you need a local presence to look after the homes at elast weekly if not daily.

Personally, if I had money to invest, I woudl pick up some moderately cheap homes in decent suburbs and also pick up some cheap homes in a different type of city elsewhere to hedge my bets. Buying Homes in the City of Detroit is a gamble. I could pay off well, but you could lose a lot as well, especially if you are nto around to keep an eye on things.

It will be hard to find decent tenants short term. few people wnat to live int he city of Detroit. The schools are terrible, services are terrible, taxes are high, crim is high in many areas. Thus, the tenants amny of these places get are people who have no other choices. Often not ideal tenants.

[bayarea-girl]

Coldjensens and others, thank you so much for your input. I guess I'd better keep investigating the areas as well as some others.

[Tiger Beer]

Originally Posted by bayarea-girl

I don't mind fixing up things (the place a be a dump, but hopefully in a good neighborhood).

That's part of the problem...$1 houses aren't in good neighborhoods. There are reasons they are practically being given away.

If you drive around in Detroit...you'll see old beautiful houses everywhere, but broken windows, barred up, boarded windows, on and on....looks like a war zone hit the areas...

Originally Posted by bayarea-girl

Since the job market is slow can the places really be rented out? Is the city dead?

Personally I can't imagine anyone wanting to rent out most of what people see or drive by in Detroit.

Originally Posted by bayarea-girl

What is Detroit doing about the economic situation?

Mmmm..

Originally Posted by bayarea-girl

Do you think things will turn around in the next 5 to 10 years?

No way.

---------

Having lived in the Bay Area...and seeing 'Oakland'...I thought Oakland was a really really COOL city...it has tons of Asian restaurants, great weather, many nice liveable neighborhoods all over the place. No comparison whatsoever.

I also lived in New York City...and lived in Washington Heights, which has a horrible reputation. However, it is still very populated with people all the time...and had a lot more than just barred up broken glass houses and such...it was actually very liveable.

Detroit...I think you really have to see it to imagine it. Think of a place that mostly looks deserted with gorgeous old buildings barred up, broken glasses, boarded up...when you find businesses that are open...it seems like they are always a liquor store. Again, plexiglass as thick as you'll ever see in your life surrounding the attendant (same with gas stations).

It's an interesting idea that it could be revitalized...but $1 houses are basically saying 'just take it'...

Again, I'll go back to Oakland, California. I drove around that city quite a bit, but never saw the 'slum area'. I'm sure it is there somewhere, but I certainly never saw it. Honestly, I lived in Treasure Island, which commited me to San Francisco the majority of time. I can think of a few undesireable areas of SF like Tenderloin...but Tenderloin was actually very lively and filled with restaurants everywhere. Not safe at night.

I guess imagine Detroit being the Tenderloin, but NO restaurants...and the feeling you get there at 3am, is the feeling you'd get in Detroit all the time...and close down all the stores and business, put thick bars and boards, break out all the windows, shut down all the stores except for some liquor stores, and put the attendants surrounded in amazingly thick plexiglass...and that is basically what the entire city of Detroit is like.

[Tiger Beer]

Actually I just looked on realtor.com, there is only 1 house for $1. There are 189 houses for under $100. I just upped it to under $5,000, and had 1,109 houses.

Detroit, MI, Real Estate Listings and Detroit, MI, Homes for Sale - REALTOR.com®

Funny, as I look at the houses on there, sure they are boarded up, but they don't look QUITE as bad as the feeling when driving around in Detroit. Still though...

Interesting thread, by the way...

[MandMTwins]

Hi,

I am thinking of buying a house on Evergreen St., Southfield, Detroit. I thought it was a nice area where I saw it, but the reference here persuades me to question my intuition.
please let me know about this area of Southfiels, because some parts aren't good.

Thank You