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I think I would run fast from this. It has disaster written all over it for you. Sure, the price looks attractive with bids starting at $1000, but these also appear to be buildings abandoned by the owners, and taken over by the city due to delinquint taxes. That doesn't speak much to the property value that the prior owner just walked away.
Rehab may not be cheap, especially if there are code/structural problems going on. Rehab could cost many thousands.
Then, you have to wonder what kind of tennants you will attract and at what rents.
Making money here sounds like a huge gamble to me.
I have a real problem answering this question for the OP as it is pretty obvious that the poster is not really familiar with real estate investing, much less the Metro Detroit market. However, somebody might get some value from this.
When you are buying a house in one of those Detroit auctions, you have a LOT of things working AGAINST you, including:
1) a non-functioning city government.
2) a house that has been vacant, often for years.
3) a house where anything of value - plumbing, fixtures, etc, - are long gone
4) an area that is not attractive to MOST renters, even Section 8
5) a certain element who will steal anything of value as you clean up your property.
6) city property tax rates that are staggering
I have been in most neighborhoods in Detroit over the years and I just cannot see that there is a lot of money to be made, and certainly not easily.
In 2008, I met several RE investors who were buying investment properties in working class suburbs outside of the city - Dearborn, Inkster, etc. at bargain rates and renting them out. However, these guys had crews to bring the properties up to code. Back then, there were tons of deals out there, many of which are now gone.
I have a hard time seeing any money being made here. I'm from Michigan, have a great respect for Hockeytown... but you're better off just bulldozing those houses.
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