Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x

Posted almost 9 years ago

Good Deals: Buy Homes In Flint MI for $14,000

According to East Central Association of Realtors in Michigan, the median price of a home in Flint is currently $14K. Plagued by plant closings and job losses in the auto industry, high crime rates, devaluation of real estate since the mortgage crisis, and the recent municipal financial and water contamination crises, it’s hard to imagine why anyone would want to buy a house in Flint, even at bargain prices.

Approximately 100K people still live in Flint, though the population has declined since the 2010 census. So, those people have to live somewhere. CNN.com reports, “… sales in Flint haven't stopped completely. In the first two months of this year, 116 homes were sold in the city. The cheapest sold at $1, while the most expensive came in at $249,000.”

Investors having their own reasons to buy properties in Flint are picking up some good deals right now. Some of them live in Flint, of course, and want to buy real estate there, although rents are reported to be quite low, between $400 - $500 per month. In addition, the vacancy rate is reported to be the highest in the US.

Other investors have sentimental and financial ties to the town, such as Detroit Pistons’ owner Tom Gores, who announced in January he’d commit to raising, “… at least $10 million and deploy operational resources to a broad range of short- and long-term initiatives to help address the crisis in Flint, Michigan,” his home town. That’s a quote from NBA.com, where you’ll see a link to FlintNow.org, Gores’ fundraising site.

Contributing to Flint’s high vacancy rate is a high percentage of abandoned homes, many of which are in deplorable condition, making it impossible to achieve a cost-effective ROI for any investor’s purposes.

Flint, Michigan is not the only city with severely compromised residential real estate values. Other cities, at least in certain parts of town, also have abandoned properties, foreclosures and dirt cheap houses owned by desperate people.

Are these houses actually good deals? It always depends on an investor’s own goals. Personally, I’ve been in acquisition mode and I’ve been in liquidation mode, back and forth over the years. If low prices matched-up with my own circumstances and goals, a cheap house might be a good investment for me. But just because the asking price is low doesn’t mean it’s a good deal for me, or for anybody. Timing defines a good deal for me, as it always has for other investors.

If you’re living and/or investing in Flint, Michigan, leave a comment on the topic. We’d like to hear from you.



Comments