Detroit investors advice please

[Account Closed]

I bought a home in Detroit Dec 2009. It was a package including rehab for $35,000, in a good neighborhood. To make a long story short, I had unexpected bills and bad tenants. I had to change management companies to get them out. The tenants destroyed the house, just under $5,000 of repairs. They never paid the water bill, (the previous pm did not have them sign a water afidavit),and the house just got broken into and vandalized (rehab was almost done), my guess by the previous tenants. I now have to pay to have the house boarded up. Last year I profited $2,000, but that was only because the previous pm wanted this to work. He didn't charge for his fees to place the tenants and also some of his agent fees since the tenants did not pay full rent most of the time. Also he didn't charge for some minor repairs he did. For this year, I am about $5,000 in the negative. As the months go on with out a tenant it will be more. The new agent is very efficient and I won't have the problem with the electric bill and water bill again. But Detroit is fees, fees, fees. My question is, is Detroit worth it? It may take me a couple years just to recoup the money I am out this year. Are there any happy Detroit investors? This feels like a mony pit to me. I have someone who will buy it for $30,000 with tenants in place. Should I get out now before I loose more $ ?

[Phillip Gainey]

It's not just Detroit. It boils down to demographics. Stick with areas where the demographics mirror the national average. That will eliminate properties within the city limits of most large U.S. cities. Detroit, Cleveland, Atlanta, Memphis...etc. Don't listen to people with something to sell who will tell you it just depends on the neighborhood. It is what it is. And it's NOT for most out of state investors.

Stick to the suburbs.

PG

P.S. I don't go to biker bars. Don't like rowdies and don't want my butt kicked. So does that mean I need to pick "the right biker bar", or does that mean I should "avoid going to biker bars"?