Time to buy Real Estate?

[scolls]

Originally Posted by bc008

Do you mind me asking his whereabouts?

Its nice to know when another northern michigan resident is planning to move to detroit metro

Roscommon. They are desperate to get out of that ****hole.

[marylee54]

House in Detroit?


I thought that was the next ride at Disneyworld, next to Tower of Terror!

[zthatzmanz28]

Originally Posted by marylee54

House in Detroit?


I thought that was the next ride at Disneyworld, next to Tower of Terror!

Though I am not a math major, I did some calculating before I started looking at purchasing my first BLOCK of houses in the Brightmore area.

after all, like White Castle they are cheaper by the dozen...


5 houses (or what resembles a house) inside Detroit city limits
@ $5,000 each = TOTAL $25,000.00

Taxes for 5 houses (or what resembles a house) inside Detroit city limits
average $6,500 ( they are not my primary residence therefore I do not have HOMESTEAD papers and am taxed at HIGHER rate. $32,500.00

TOTAL = $57,500.00 and I still need to "remodel"...

Remodel costs for 5 houses (or what resembles a house) inside Detroit city limits average $7,500 (IF all the copper wiring and pipes are still intact)
TOTAL= $37,500.00 (actual costs may very well exceed $10,000 each)

EXPENSE for 5 houses (or what resembles a house) inside Detroit city limits = $95,000.00 and I now need occupants or all my work is at risk of being vandalized..

I make payments for the next 12 months as I am unable to get tenants willing to pay the minimum $650 just to cover the payments I have to make on loans I secured to by 5 houses (or what resembles a house) inside Detroit city limits and last month 2 of the houses were stripped of the aluminum siding and copper plumbing.

I then manage to win the lottery and pay-off outstanding loans on 5 houses (or what resembles a house) inside Detroit city limits and continue to hope and pray I can get SOMEONE to move in...

As time moves forward, my $95,000.00 investment into landlord heaven increases more than $34,000 a year as my equalized value rises (how does this happen?) and TAXES increase.

By year two I have almost $175,000 invested in 5 houses (or what resembles a house) inside Detroit city limits and no way to sell or possibly break even.

I contact a management company run by someone named Ferguson and he is willing to help me out by offering to buy the 5 houses (or what resembles a house) inside Detroit city limits out right for $6,000.00 each minus the loss of siding and copper on the two vandalized properties OR I can pay him $1200.00 per year for each house for him to "manage" the day-to-day oversight of my 5 houses (or what resembles a house) inside Detroit city limits.

Over $175,000.00 invested within 2 years on 5 $5,000.00 houses and annual costs of over $30,000.00 in taxes for property that has just about no resale value?

The land of opportunity is why they move from the coasts to Detroit-

Like Carleton Sheets--REAL ESTATE will make you rich...

My favorite move maybe Money Pit with Tom Hanks but that doesn't mean I want to actually experience it.

[Coldjensens]

Or you could have moved into one of the five houses and looked after them yourself. Plus get 10 friends to each do the same thing and now between you, you own 50 houses - a whole neighborhood. You and your frinds can handle security and spruce up the neighborhood. Pretty soon your 50 houses become a highly desireable area to live and your houses fill with renters. You remain and organize the tenants into an association so that you not only have help in securing and sprucing up the neiighborhood but you also have more pull withthe council. Your effort attracts the attention of the medai and pretty soon another 100 people decide to join you (only by now the houses are $20,000). Now you have 550 houses being maintained and spruced up with hired security supplementing the neighborhood watch that you organized. Houses start to sell for $50,000 to $80,000. Every one who did not buy in when you did starts thinking about how stupid they were.

It is all about timing. In the 1950s-1970s California Real estate was comparatively cheap. Many people used the formula set out above. Many others decided to go for it. Did you ever wonder where on earth California got so many thousands of millionaires?

If you do not risk, you do not win. It is all about timing. So the question is, is this the time? People from other states are getting stirred up. Bargain houses are being snapped up already. We may be wishing that we had bought a couple of houses last year. There is a bottom. The trick is knowing when you hit it. Livable homes will not remain at $5000 for long. Now when people are paying $400,000 for the same house in other places.

And Yes, Cities do turn around. Even when the seem hopeless. Ever go to Time Square in the 1980s? OUr former home City was described as "the Combat Zone" in the 1970s -1980s. For a time, it became desireable, now it is average, but houses that once sold for less than $50,000 were selling for $750,000 three or four years ago (now they are not selling at all so it is hard to figure what they would sell for).

[scolls]

Or you could've known better and not invested in 5 houses (or what resembles a house) inside Detroit city limits, but then we wouldn't have had that wonderful story.