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Old 03-25-2009, 07:29 PM
 
58 posts, read 326,693 times
Reputation: 60

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I will be acquiring $150k soon and am trying to figure out the best way to invest it. Since real estate is so mind-blowingly inexpensive in Detroit, I was thinking of possibly buying 10(quantity) $10k dollar homes in better areas of Detroit, and renting them all out for approximately $500 each a month. The other idea I had was to possibly buy some cheap land (in better areas of Detroit), and build some higher end container homes and rent them out for higher prices to the more middle/upper-middle class families. And the reason why they would be container homes is because container homes are super cheap to build (and they're extremely strong btw) and the welding on them could be done by me and my brother.

Anyways those are my two ideas. What do you guys think?

BTW, if anyone has any better advice, it would me much appreciated if you could let me know.

Thanks,
-Mike
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Old 03-25-2009, 09:56 PM
 
58 posts, read 326,693 times
Reputation: 60
Hmm. After further examination of the city itself....I don;t know if there are any "good" areas

LOL.
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Old 03-26-2009, 08:05 AM
 
Location: Durham, NC
1,049 posts, read 3,679,183 times
Reputation: 732
God, I wouldn't... depends how much you want to risk your money, I guess.
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Old 03-26-2009, 05:32 PM
 
85 posts, read 273,539 times
Reputation: 39
Buying cheap and renting is OK; it's better if you already have a little real estate or landlording experience. And although I would love to encourage new development, it would be difficult from a financial perspective to justify building new and then renting.

Example: You could spend $80K* to build, put a first mortgage on the property (to get your $80K back in your pocket) where you repay the bank (and property taxes, etc.) $600/month, and rent the property for $800 month, for a net return (profit) of $200/month.

You then take the $80K you have back in your pocket, and repeat the process.

Repeat again.

But as you can see, this is a long term investment for any real returns and property values have to be stable in the area for a good amount of time. Detroit 'may not' be the most stable real estate market in terms of long term appreciation. Can you imagine the folks who built new 5 years ago who are now watching their properties values drop like a hot real estate rock.
.

* [If you could get lucky enough to build for just $80. Theses figures are just example figures.]
.
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Old 03-28-2009, 06:18 AM
 
265 posts, read 575,429 times
Reputation: 265
Quote:
Originally Posted by xmjm924x View Post
Hmm. After further examination of the city itself....I don;t know if there are any "good" areas

LOL.
The only place that comes close to being good is Sherwood Forest, and that's only because the residents go the extra mile to keep bad elements away. Other than that, there's Boston-Edison and Indian Village, but those places are surrounded on all sides by some bad slums, so I wouldn't recommend it.

In all honesty, stay away from Detroit. That city, and the state of Michigan as a whole, really has a bleak future.
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Old 03-28-2009, 11:10 AM
 
Location: livin' the good life on America's favorite island
2,220 posts, read 4,184,751 times
Reputation: 1382
Investing in real estate in Detroit sounds like speculation to me, very risky. I would think there would be a big sucking sound from people trying to get out of Dodge. How can real estate appreciate when you have housing supply increasing. Also, with less population, less corporate tax paying due to poor economy (auto) wouldn't you think that the politicians would be raising property taxes. In my opinion $150k can go very quickly, with stock market correction I'd be bargain hunting and look for 25% return over the next 18 months......
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Old 03-28-2009, 11:21 AM
 
24,841 posts, read 36,072,463 times
Reputation: 11523
Quote:
Originally Posted by xmjm924x View Post
I will be acquiring $150k soon and am trying to figure out the best way to invest it. Since real estate is so mind-blowingly inexpensive in Detroit, I was thinking of possibly buying 10(quantity) $10k dollar homes in better areas of Detroit, and renting them all out for approximately $500 each a month. The other idea I had was to possibly buy some cheap land (in better areas of Detroit), and build some higher end container homes and rent them out for higher prices to the more middle/upper-middle class families. And the reason why they would be container homes is because container homes are super cheap to build (and they're extremely strong btw) and the welding on them could be done by me and my brother.

Anyways those are my two ideas. What do you guys think?

BTW, if anyone has any better advice, it would me much appreciated if you could let me know.

Thanks,
-Mike
Get it in cash, and for now put it in a safety deposit box in the bank.
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Old 04-01-2009, 04:36 PM
 
Location: Tomball, TX
214 posts, read 698,602 times
Reputation: 60
Get it in Gold, not cash...the dollar has peaked...inflation is drawing near..
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Old 04-01-2009, 04:59 PM
 
300 posts, read 915,146 times
Reputation: 115
Quote:
Originally Posted by xmjm924x View Post
I will be acquiring $150k soon and am trying to figure out the best way to invest it. Since real estate is so mind-blowingly inexpensive in Detroit
Sometimes you get what you pay for...they are inexpensive for a reason. in my opinion, this is way to risky. How long do you plan on keeping you investments?
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