New Investor needs heeds expert opinion on a property

[Senad Pali]

hello. I am new to real estate investing and have enjoyed reading some of the forums in here. I am currently looking at a property in a different state but I am from NYC. I do not know much about detroit except for visiting once and was not the best of cities(certain areas). I do not have much to start with but I have found someone looking to sell a property for $15000. The current owner claims no liens or encumbrances on property, not a fire property, and they have a warranty deed, taxes are paid for 2011, utilities are current. The property can be rented for $550 to $750. Any opinions on what I should do or what you would do with little money to work with? Thank you

[Jon Klaus]

The first thing I would check is the quality of the neighborhood. Say no to war zones and wannabe ghost towns. Then, I'd check true comparable sales to make sure the value is really there. Chances are this property won't get over both of these hurdles.