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There's a reason houses are that cheap, and the reason is reason enough that any reasonable person would not find it reasonable to buy one of these unreasonably cheap houses.
 

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Lazy Millennial
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As I understand it many of the services and businesses in these 'abandoned' communities are gone. That's tough to restart.

An average home around my area is $370 000 - $410 000. It's strange to imagine buying a house for so little.
 

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stacker of sticks
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FSCROB said:
I have a realtor that sends me a list of $1 houses every Monday. It usually has about 50 new houses every Monday. These houses are complete disasters.
I know some people that have got some $1 houses. I stay in the 10k to 30k range
 

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So whats to stop me from buying multiple blocks and kicking those sobs out. Then squatting on the vacant houses until I can re-rent.

Buy a neighborhood, purge it out, wait, rebuild.
Nothing is stopping you and as a matter of fact it is encouraged. I have a client that is a church. They buy entire blocks of houses at a time. They did this in North Carolina, New Orleans and South Carolina. They are negotiating on several areas in Detroit right now.
 

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The best return on investment in Detroit is houses that sell and close for $8-10,000. They usually only take about $10,000 to rehab and you are paid back in full in 25 months.
 

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Nothing is stopping you and as a matter of fact it is encouraged. I have a client that is a church. They buy entire blocks of houses at a time. They did this in North Carolina, New Orleans and South Carolina. They are negotiating on several areas in Detroit right now.
Maybe I'm just a born cynic, but that sounds like a developer abusing a tax loophole.
 

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GC/carpenter
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Exlud said:
Maybe I'm just a born cynic, but that sounds like a developer abusing a tax loophole.
I never consider it abuse if it's legal. I consider it smart to legally get out of taxes, however that may be.
 

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Low cost - high risk- possibly high returns
High cost- low risk - lower returns

We work a lot in Warren , Youngstown area of Ohio. warren , despite it's smaller population ( around 40,000) , has its issues with Detroit thugs. this last several months there have been several deaths connected with folks from there. Stupid is stupid anywhere I guess. But there is money to be made. Just have to be willing to deal with people in a different way. Many are more confrontational. Still many good folks out there. Couldn't agree more with the idea of getting to know the neighbors. But even then, when something happens, most folks don't see a thing
 

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Hang your hat on one company or industry and things can change fast.

From what I see, Detroit has already been picked over.
 

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Wait till the contractor industry packs up and does all it's business outside the US hahahaha .... I bet the govt wouldn't give us tax breaks for it
 

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That guy must be a very positive person to be able to live like that. But then again maybe he went from homeless to having the biggest home in the world.
 

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PROcrastinator
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Sounds like a great investment deal. Though it makes me wonder if the neighborhood isn't a war zone.


http://247wallst.com/housing/2013/12/29/detroit-has-large-number-of-homes-worth-less-than-10000/
Brother, stay in Mass. I can tell you've never visited Detroit. :no:
Neighborhoods are terrible. You will have to worry like heck because the thieves will be going in right when u leave.

Your truck and tools can disappear very quickly.

The homes are all about 50 years outdated. They all need tons of work. Once you do renovate one, they do not sell for much at all.
Property taxes are insane in Michigan. And finally, Detroit codes and inspectors aren't lenient or easy.

I won't even work in Detroit. No matter what. I live 1 mile away, but NO WAY. You will leave there sad. I've heard of big time contractors thinking the same thing and they were wrong. The money just isn't around here at all.

There is one guy named Dan Gilbert who is a multi-billionaire who is doing a lot of work in a couple areas downtown Detroit. He owns a big portion of one of the big mortgage companies. You might want to look into him if you are comfortable in war zones.

But otherwise, you should think about it, because a lot of good contractors won't come into Detroit. It'll be hard to even get reputable people to show up. That's my experience.
 

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90%-er
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I also live fairly close to Detroit. Stay in about a four block area near the sports venues, you're OK. Get to where these 10k Homes are, and you will see why they go for so little. Stripped of copper, squatted in, no neighbors left, etc.

When I have to go there for any reason, I go from carrying concealed to flat out open carry. What a sh$"hole.
 

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Make sure you pencil in the money it takes to have black water guard your tools and site. Or to buy all new... Been in these areas a few times and don't plan on returning. You'll reach down in your belt to grab a hammer and find out it was stolen
 

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PROcrastinator
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Oh I forgot to mention when I was young about 15 we were doing concrete work.
We always started promptly at 7:00a.m. With the air jack hammers.

Until we had some shots go buzzing over our heads. That was our warning 7:00 am was too early.
So we decided to start at 8:00 after that.
 
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