Investing in buy and holds in Detroit

[Sinaloa Hobson]

Does anyone think that buying properties in Detroit is a good idea? Have you already began investing?

[Scott K.]

Originally posted by @Joe Villeneuve:

he answer is a definite....maybe.  If you know the market, the specific market, which means you can filter out the areas you should invest in, from the areas you shouldn't, then you can make a few bucks there.  I prefer the suburbs though.  I know that market, and it is lucrative for cash flow...very lucrative.

Joe I have come to the conclusion that the out of state investors just don't understand this area. 

People do you even realize that you can go 2 miles outside of Detroit and buy a 3/1 for 25-40 and rent it out for 800 a month.

The cities around Detroit are mostly safer and very well run compared to Detroit. 

I am not going to say don't do it anymore.  What I am going to say is why do it.

Do you people even realize what car insurance cost in Detroit?

Do you people even know what the taxes are in Detroit?

Do you people even know that just for living in the city you have to pay a payroll tax on top of state and fed?  Even more if you live in and work in the city.

Do you people know how long it takes to get a cop to respond to a call.

Do you know that the fire department has old out of date equipment?

Did you know that the FBI crime stats from 2013 says Detroit is the most dangerous city?

Did you know that your tenant pool is filled with section 8 and criminals?

That is all the education for today