The argument for investing in Detroit's $500 houses

[Chad U.]

This ambitious young guy seems to have found his niche in Detroit!!!  Do you think he'll make it in the long run?  

http://www.theglobeandmail.com/report-on-business/...

[Trevor Ewen]

Everything I read has two sides of the story:

Pessimistic: http://www.city-journal.org/2015/25_1_snd-detroit-recovery.html
Optimistic: http://recode.net/2015/02/09/whats-driving-the-next-detroit/

One thing I'll say for him. If he lives in Detroit, and is getting involved with the community, then he has a better chance than most people Looking at Detroit from afar. With boots on the ground, I think you can fair much better in a rough(er) market. I wouldn't suggest anyone follow his lead without a solid and trustworthy team in Detroit.

My understanding is that holding costs are also incredibly high. You can pay $500 for the place, but your tax bill may be 10x that.