Would it be wise to invest in Detroit? (Highland Park: apartment, to rent)

[NARFALICIOUS]

With housing and even commercial buildings dirt cheap, like the price of a car cheap, why shouldn't someone with enough startup money consider investing into a building or two?
Have we seen the bottom yet?

Even though things are bad, they can't be like that forever. Even if it takes 10 or 20 years, imagine a 12000 house you buy today with cash or a 25000 large apartment building when you're able to charge even 500 a month in rent someday in the future?

Though things are bad, the city isn't going away. They aren't going to magically close up shop and border the city up like Escape From New York. So should we assume that at some point in the future, undetermined as it may be, the city will regain some of itself back?

Or would one be silly to invest in Detroit?

[Retroit]

Yes. Unless you have spent a lot of time here and know the situation, I think you would be making a big mistake.

One thing you have to consider is maintenance. You can't just buy a property in Detroit and sit on it for 10-20 years. During that time, the roof will deteriorate and need replacement, the lawn will need to be mowed, the trees and bushes will need trimming, vandals will throw stones through the windows, graffiti artists will paint the walls, scrappers will break in and steal anything made of metal, arsonist will firebomb the place, etc.

Another thing to consider is who you will be dealing with once you decide to rent. There is a reason why landlords in Detroit often walk away from a property after it has been rented out to typical Detroiters. That reason is because the tenants often trash the place. You will also have high turnover as the moochers of society have figured out that landlord-tenant laws favor the tenants. Eviction proceedings take time, during which they don't have to pay.

Now, before DetroitsOwn criticizes me for never saying anything good about Detroit, I will mention that if a person is intimately familiar with Detroit, knows how to deal with Detroiters, and is willing to devote the time and money necessary, there are reasonable investments that can be made in the city. But this is not something that can be accomplished from a distance or through a "management" company.

[zthatzmanz28]

SInce no one has, I think that in itself is an answer. Detroit will probably not be rebuilt with financial investment, but rather from a grassroots movement when future residents decide to move into the city and the current rsidents decide they have had enough and begin running the gang-bangers (I know THERE ARE NO GANGS IN DETROIT__LOL) and thugs out--or the non-existant bangers and thugs go legit....Escape from NY is not that far off?

[Cliffie]

It's a great idea in general to invest in Detroit -- you can negotiate rents down to nothing and if you start a business, you will have a line around the block of qualified people looking to work for you.

HOWEVER: People are getting slammed with enormous bills for back taxes owed by previous owners. I hope the city's bankruptcy will put an end to that, but in the meantime it's a great idea to research the property taxes owed on a place you want to buy.

[Cliffie]

Originally Posted by zthatzmanz28

Since no one has, I think that in itself is an answer.

Ah, but that's not true. News organs only want to be doomcriers these days, but there are a lot of people investing in the city, from restaurateurs and urban farmers to art collectives and wristwatch companies. Even Highland Park's rotting beauties are being bought and cleaned up by people who ACTUALLY. WANT. TO. LIVE. THERE!

[Yugoguy]

You need to have a very good knowledge of what and where you're getting into. Anything near downtown you fix up and rent out will likely have people lined up for miles. Outside of that, not so much.

[Tekkie]

I agree with others. For now, you'll have to focus on investing in areas around the city core (Downtown, Midtown, Corktown, Greektown) if you're going to have a shot at success. That's the only place anyone would want to be at this point. I would come here to check it out before doing anything though. You have to see this place to believe it.

[i-drive]

I'd only buy vacant lots, land, no structures...