[cunningwoolf]

Hello all,
I have a chance to purchase a turnkey property in Pontiac with renters in place, single family dwelling for under 70K. I'd be purchasing sight unseen and I would be holding the property for a minimum of five years. Does this sound like a wise investment?
Very grateful for your feedback

[djmilf]

No. It's not a wise investment. Especially because you're purchasing a five year commitment "sight unseen" in a state that could very well be in an economic depression if General Motors fails.

Pontiac is the most financially distressed city in Oakland County. Due to the lack of funding the city of Pontiac has already cut its police force back beyond the bone. Violent crime and murder are reaching new heights (or rather, new lows) for Pontiac.

Your tennants could very well be gone in three months; you'd be stuck for a minimum five year commitment.

Anything else you'd like to know about your proposed investment?

[Cliffie]

The phrase "sight unseen" scares me. The center of Pontiac is undergoing gentrification and Indian Village is a very nice neighborhood, but there are some other areas that the rats enter only in pairs. If you want a fixer-upper on the cheap, Pontiac is the city for you, but don't even CONSIDER buying sight unseen!!!

[brokerdave]

you should post this in a more appropriate forum.

[dmetro]

Nooo i would never reccommend investing in Pontiac real estate. Pontiac is the ghetto of otherwise wealthy Oakland County, and low property values and high crime were a part of life there even during the height of the real estate boom. There are numerous abandoned homes, horrible crime, dysfunctional public schools and a relatively poor population. If you invest in Pontiac at all, I would invest in the northern part of the city, near the Auburn Hills border. This area of Pontiac is actually lower-middle to upper-middle class. However, the southern portion of Pontiac can be as bad as Detroit in some places.

[Luke9686]

Terrible idea. Honestly, just the fact that you have to ask about it says you aren't ready for investing. R.E. investing can be done, with the proper education. You must first drown yourself in educational materials (not the ones from TV).

Most mainstream R.E. courses are worthless. There are many good ones, but they are developed by people most haven't heard of. Simply because the successful investors are actually out there doing it instead of selling some pipe dream.

Go to your local real estate investing clubs, talk to the SUCCESSFUL people. You can PM me for some resources.

Don't make too much though or you'll be considered "wealthy."

[brokerdave]

please don't listen to these people. everyone thinks they are experts in real estate.

just do a search in the local area for rentals and find out what the going price is for the area around that home. 70k isn't bad, you only need to make $500-600 a month to cashflow it, assuming you paid 70k for it. i have a client who has been a slumlord in pontiac for 20 years and he wouldn't have it any other way. his rentals are in the heart of the ghetto.

[Luke9686]

If you're paying $70K for a place that only rents for $600 per month you will soon go broke. That's not even close to 1% of the purchase price, which is the minimum most REAL investors look at. Most want 1.5-2% in rents.

Also being a slumlord is the lowest of the lows. A lot of people already have bad opinions of realtors, and then one comes on here suggesting someone to be a slumlord. Nice...

One could say don't listen to realtors on here. They all think they are experts in real estate investing...

[cunningwoolf]

Thank you for all of the feedback; I've made my decision based on all of the responses and more research, and, of course, the news. I'm purchasing locally, I will not be a slumlord, present news does not bode well for that part of the country. I am a real estate broker myself and not all of us are alike. I am very successful and have not had to sacrifice others' well being in the meantime. Luke, please don't color a group based on the few; and Broker Dave, I don't know if you're a member of NAR, but our membership would really appreciate more responsible representation.