Michigan properties..500.00 to 3500.00 on ebay
SLC, UT · Member since 2014 · 64 posts · 10 votes
Michigan properties..500.00 to 3500.00 on ebay
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votesI don't know whether to laugh or cry...I chose laugh because it is really funny. The questions, and off hand comments, are really sad. You know nothing of Michigan do you? Michigan is a great state. You may be surprised at the fact it has a police force, an actual legal system, and a surplus of renters.
You do realize that Michigan is not actually in Detroit, and that the suburbs are thriving?
Every comment here should be directed to Detroit, however it appears as though it is being directed at the entire state of Michigan.
Here's another fun fact. Many, Many, other REI's are bringing their cash here to invest because of the returns...oh, and because their investments are protected by one of those police stations with a courthouse...although the last time I checked, it did look like it might have been built before 2000.
Oh, and thanks @Account Closed for your voice of sanity.
95 Replies
- Real Estate Investor · Newark, DE · Member since 2014 · 20 posts · 4 votes11y
@Ray Foley I appreciate you helping to clean up neighborhoods. With such efforts, the entire country can eventually be reformed. It's amazing how one can see huge million dollar properties but just ten minutes away there are crappy run down buildings and drug addicts everywhere. What a mess!
- Real Estate Professional · San Francisco-East bay, CA · Member since 2013 · 340 posts · 50 votes11y
@Dirk Smithson Hi, Question about Detroit has always interested me and thanks for starting this out.
@Joe Villeneuve :I have watched many of your responses on "Detroit" topics and they are all helpful.
Here are my thoughts: While we all know there are good and bad areas and whole blocks that are empty, I feel that if a person or a group can buy everything up the whole street and start a cleanup project, even the city might help. Maybe many other entities might join to help in someway. If folks are interested I am open to discuss forming a group. Holler @ me or Inbox me.
Between, the weekend after X'mas I am planning to be in Detroit driving the streets and talking to people. I would also like to visit the office of -qu icken loa ns- who moved operations into town and is thriving. - Thanks. ND.
Originally posted by @Naveen Desai:
@Dirk Smithson Hi, Question about Detroit has always interested me and thanks for starting this out.
@Joe Villeneuve :I have watched many of your responses on "Detroit" topics and they are all helpful.
Here are my thoughts: While we all know there are good and bad areas and whole blocks that are empty, I feel that if a person or a group can buy everything up the whole street and start a cleanup project, even the city might help. Maybe many other entities might join to help in someway. If folks are interested I am open to discuss forming a group. Holler @ me or Inbox me.
Between, the weekend after X'mas I am planning to be in Detroit driving the streets and talking to people. I would also like to visit the office of -qu icken loa ns- who moved operations into town and is thriving. - Thanks. ND.
Send me a pm and I will give you a tour. I will show you the good spots and the bad spots. I am interested in what outsiders see compared to us locals. I will also show you some burbs that have great cash flow without being in a warzone
- Brownstown, MI · Member since 2014 · 344 posts · 98 votes11y
It seems like there's been a movement by large corporations to start in the heart of downtown, where all of the business is, and sort of migrate outward. Some are investing in removing the blight. I suspect the big corporations are buying any property there because it is dirt cheap right now. But it also makes me wonder why they haven't just decided to buy up whole blocks like was suggested above.
The troublemakers are in those areas, and they have to go somewhere. Good luck trying to uproot them. They have to go somewhere. A lot of people in those areas are struggling to keep the water on (many have defaulted, and that's been all over the news here becuase the city wants to turn off their water, and people feel they are entitled to have their water on without payment).
I suppose if you can find decent people that truly want the help, maybe you take over their mortgage, catch them up, give them a new furnace or running water, or a kitchen, and they pay you a rent that they can afford and you can make cash flow on, it will work for you. But those areas are tough.
A couple individuals that I work with were called for Jury duty, and since we are wayne county, that means Detroit for jury duty. They were telling me how a simple question of "please tell us your name for the record" to the witness on the witness stand wouldn't get answered becuase they feared the defendant might know somebody, another gang member or what have you, that might hurt a member of their family or figure out where they lived and rob them if they said their name.
One of these individuals got this explanation from a fellow juror in deliberation because one of the jurors lived down there, and my friend was a white dude from suburbia who had no idea what it was like to live there.
Just be careful guys. There's a reason the houses are 500 bucks.
There are other very close cities like Ecorse and River Rouge that have homes for similar prices. You might want to try checking those out also.
People are leaving Ecorse and River Rouge. I have 2 properties in Lincoln Park. Hell I even live in one.
I would suggest LP and even South Warren. Eastpointe, Redford, Taylor, Dearborn Heights. Hazel Park, Oak Park,
- SLC, UT · Member since 2014 · 64 posts · 10 votes11y
Dearborn Heights is of intrest, I will look into some properties there, thnx
- 11yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
@Dirk Smithson Dearborn Hgts isn't a market for an out of state investor. If you look at a map. you'll see why. The shape alone makes for a difficult time with comps. It can best be described as being shaped like a "barbell", but comps have a tendency to bounce like a "superball".
- Brownstown, MI · Member since 2014 · 344 posts · 98 votes11y
Originally posted by @Scott K.:
People are leaving Ecorse and River Rouge. I have 2 properties in Lincoln Park. Hell I even live in one.
I would suggest LP and even South Warren. Eastpointe, Redford, Taylor, Dearborn Heights. Hazel Park, Oak Park,
Oh I agree, I wouldn't buy in Ecorse or River Rouge either personally, but the man was interested in Detroit and cheap homes so I gave him 2 other non Detroit areas to look at ;).
- Detroit, MI · Member since 2014 · 4 posts · 1 vote11y
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"
Warren Buffett
I live in Detroit and to tell you the truth and this may be bias but Detroit is a land of gold and the evidence is in the previous responses. Detroit has bad neighborhoods just like everywhere else but it also has extremely good areas. Some in fact if I dropped you off blindfolded you would not believe you were in Detroit.
The houses that are 1k could be in a nice area but most investors that are afraid of the D just don't do the necessary leg work. This creates extremely awesome spreads that most dream of. It does take more legwork than maybe some other places but where else can you get a 2700sqft house 5bd 2.5bth for 20k in one of the better neighborhoods. put 10-15k into it and sell it for 120k+.
Its all about your work ethic your connections and your plan. The right mindset will make you a wealthy person here.
Originally posted by @Nicholas Tarver:
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"
Warren Buffett
I live in Detroit and to tell you the truth and this may be bias but Detroit is a land of gold and the evidence is in the previous responses. Detroit has bad neighborhoods just like everywhere else but it also has extremely good areas. Some in fact if I dropped you off blindfolded you would not believe you were in Detroit.
The houses that are 1k could be in a nice area but most investors that are afraid of the D just don't do the necessary leg work. This creates extremely awesome spreads that most dream of. It does take more legwork than maybe some other places but where else can you get a 2700sqft house 5bd 2.5bth for 20k in one of the better neighborhoods. put 10-15k into it and sell it for 120k+.
Its all about your work ethic your connections and your plan. The right mindset will make you a wealthy person here.
See this right here is what I laugh at. NO these $500-1000 properties are not in the good neighborhoods. THAT IS FALSE.
HAHAHAHAHAHA total rehab of a $1000 house that is 2700 sq ft for 20k.
HAHAHAHAHAHAHAHAHHAHAHAHAHAA tell you what you let me know when you buy one of these and I will come look at it. I want to see this for myself. I really do.
You are the one that talks about these types of deals but have never done it.
The plumbing alone for all those bathrooms would be 20k. Everything is gone but yet you can fully rehab a $1000 property. Hell illegals wouldn't work that cheap.
So please there are lots of out of town investors that want in on the rebirth of Detroit but don't just flat out spread false info.
- Detroit, MI · Member since 2014 · 4 posts · 1 vote11y
Since you are not far from Detroit look into University district homes and look into Palmer woods homes. When there is a motivated seller in these 2 places alone a property can be bought with little work to be done. In these neighborhoods criminals don't break into homes and take everything out like other parts of the city.
For example there is a house right now North of 6mile on woodingham a very nice area can't think of the name of the neighborhood but there is a 4bd 2bth 2400sqft for 15k that is move in ready yes it's not updated and the back taxes are like 8k but the value of the house is 75k easy.
The deal I posted may be rare but it is not as rare as it is in other cities. The point is if you come across a deal in a good neighborhood it is very likely the spreads are more than generous.
Also I was saying that some of these houses that are 1k could be in nice areas not the best in the city but in livable areas without burn downs or vacant houses on the block.
Here is a deal you can view that I have done. I bought a house on 10071 vaughan Street which is 1 block from evergreen for 1k yes 1k with a year of owed taxes on it. The place was on the market for a while and the reason was because whatever squatter that was in there dog crapped all over the place. Me and my wife cleaned it and put about 7k in repairs which was mostly cosmetic. We flipped this house for 41k.
Hahaha all the way to the bank Scott.
Like I said before you must have the right work ethic connections and mindset.
- 11yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
there is no doubt that every city has its local investors that can do what you do or have done... Where this type of investing becomes a big loser is when someone is sitting at their computer out west somewhere and thinks they can replicated what you do.
One way to do that would be to partner with you.. that would be a safe way.. But heck since your buying and flipping homes for less than most used cars you don't need capital partners...
Your going to buy it and flip it to out of area investors and make as much as you can make.. this is of course SOP in the RE business.
But because the price of entry is so ridiculously low you will have many that really don't know what they are faced with give it a shot only to fail.. and you local dudes just pick up the peice's of their broken dream.
- Detroit, MI · Member since 2014 · 4 posts · 1 vote11y
@Jay Hinrichs
Im saying exactly what you are saying and I totally agree. You have to be here it does not work as effective unless you are here or have an amazing partner that knows the city very well.
- Investor · Plano, TX · Member since 2014 · 145 posts · 102 votes11y
Detroit may or may not make a come back..who knows. It's speculation at it's finest.
Just because it's there and has water and electricity doesn't mean it will come back. I'm sure some investor was buying up property in old Gold Rush towns for pennies on the dollar...thinking he'd be rich when things turned around. But then again, some invested in Las Vegas early on and probably made a lot of cash.
- SLC, UT · Member since 2014 · 64 posts · 10 votes11y
Good thoughts here. I'm torn on the decision to buy one or not, I agree you need to be there if your going to be turning profits, however I may buy one and just sit on it and do simple cosmetics like roof windows. I for sure would not fix the HVAC, plumbing and electrical and have it be vacant for a week only to find out a thief stole all of the copper for their drug habit.
My biggest issue is having it sit vacant for too long after putting time money and effort into it.
Nicholas, I totally agree with the Warren Buffet quote, 99 percent of people ar afraid, thts why theyre the 99 percnters
Originally posted by @Nicholas Tarver:
Since you are not far from Detroit look into University district homes and look into Palmer woods homes. When there is a motivated seller in these 2 places alone a property can be bought with little work to be done. In these neighborhoods criminals don't break into homes and take everything out like other parts of the city.
For example there is a house right now North of 6mile on woodingham a very nice area can't think of the name of the neighborhood but there is a 4bd 2bth 2400sqft for 15k that is move in ready yes it's not updated and the back taxes are like 8k but the value of the house is 75k easy.
The deal I posted may be rare but it is not as rare as it is in other cities. The point is if you come across a deal in a good neighborhood it is very likely the spreads are more than generous.
Also I was saying that some of these houses that are 1k could be in nice areas not the best in the city but in livable areas without burn downs or vacant houses on the block.
Here is a deal you can view that I have done. I bought a house on 10071 vaughan Street which is 1 block from evergreen for 1k yes 1k with a year of owed taxes on it. The place was on the market for a while and the reason was because whatever squatter that was in there dog crapped all over the place. Me and my wife cleaned it and put about 7k in repairs which was mostly cosmetic. We flipped this house for 41k.
Hahaha all the way to the bank Scott.
Like I said before you must have the right work ethic connections and mindset.
you just moved the goal post. That's not what you said.
you said buy a 2700 sq ft property for a $1000 and put 20k into it. That's what I called BS on. And look at that I was correct. That's not what you did. Put bought a little dumpy house and put lipstick on a pig and found a sucker to buy it.
So again where are the deals for a 2700 sq ft property that will only need 20k for rehab. Where is this property.
Tell you what you find this type of deal and I will fund it. Is that a deal.
Are you saying that people that don't invest in the garbage neighborhoods are lazy and have no work ethic?
oh and yes when you need to pay back taxes on a house that adds to the cost of the property so its not 15k it 23k. That is filled with lead paint and old plumbing.
The problem is you start to update those properties the cost can get out of control.
Also people that do not pay property taxes do not do the needed upkeep to the property.
I like parts of the city but you can't tell people that are out of state or even the country that they can do these types of deals.
Many contractors will not even go south of 8 mile
- SLC, UT · Member since 2014 · 64 posts · 10 votes11y
I don't think hes calling anyone lazy, I didn't hear that at all. I dont think any one investment should be excluded, there are different personality types/situations and If one is willing to buy a home for a 1000.00 and fix it up and live in it, then so be it, If I was single I would probably try this,
If a person were making 50k per year and had no debt because he/she lived in one of these. it would free up alot of income to qualify for other investments. I knew of a guy who lived in a mobile home in a park, he was worth millions, because he had no debt, he eventually bought the mobile home park and a dealership.
there is risk involved living in these areas, I am the type that would consider it, my wife is reluctant, but would at least consider if safety wasn't an issue.
right now I cant qualify for a mortgae for another home, not because of credit or income but because I dont have enough equity in my primary res. If I had 20% equity I could buy the bigger home in a better area and rent this one out. I pay only 1000.00 but rents here demand 1400.00. I'm stuck not because of credit or income but because my neighbors walked away from their homes leaving values to plummet.
I cant find anything in my city for under 100k and at that price they need just as much work as the 1000.00 D-town homes. So it is very appealing to me.
I will keep looking in the better d-town areas. I may move out there for a while.
- Detroit, MI · Member since 2014 · 4 posts · 1 vote11y
I believe this is a good ol case of not reading thoroughly. You continue to say a 1k house in a good neighborhood and put 20k into it. I wrote there are good 1k houses out here but they take leg work and knowing the area. Yes most of them are trash and just need to be demolished but thats where having a person on the ground is needed. If you know anything about Detroit you know one block could be mansions and the next 2bd .5bth lol.
Also if you do work here people give houses away just because of taxes so you have that as well. But to get back to the communication breakdown I was stating that you can find deals for 20k in a nice neighborhood put 15k into it and sell it.
Also that deal I posted is a 1k home that is in an ok neighborhood that needed cosmetic work an updated kitchen, new electrical, stained floors, yes new paint, and me and my wife did the basement.
So lets stop trying to prove each other wrong cause it is not helping the originator of this post. The last thing I am going to say is there are deals to be made here but to get the best deals you need to be here and or have someone you can trust here.
O yea I am not saying anyone is lazy but here things are different and there are a lot of scammers and untrustworthy people but doing your due diligence will save you the heartache and weed out the impostors. And your comment about contractors going south of 8mile is my point exactly why you need to have the right connections.
Scott I wish you the best in Madison Heights or wherever you invest your time.
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"
Warren Buffett
I have 2 properties in Lincoln Park 1 in Roseville and 1 in Madison Heights.
So its not like I am above of investing in the cheaper cities in The area.
You come for a visit I will show you where these $1000 properties are and you would not live in those neighborhoods. It is way to dangerous. No matter how much of an idealist or a true believer you are these neighborhoods would chew you up.
I am married but have no kids so I can find deals in safe cities but not great schools and it doesn't much matter to us,
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