I have been buying in that price range (Warren, hazel Park, Eastpointe, MI) for the last 7 years and I can tell you yes there is a little more B.S. You have to put up with. But the returns are a lot better than when I buy in Royal Oak, Clawson etc. "Good" areas.
In December I purchased four houses. Two of the houses were 25k each tenant occupied rent for $700/mo. One was 27k north of 696 in warren(6k repairs) rents for $800. And the last one cost 21k(12k invested) will rent for $925-950.
Last week I picked up a rental for $1500.00 (it came with a harley in the garage) hahah in warren and will put about 12-18k in repairs. it also will rent for around $925-$950.
Now I would have a little more work in these market areas but with over 70+ properties in all different markets around Detroit (north of the city) I would take the returns with a little more bs.
I have had problems with renters in "good" areas and bad but it's a great trade off for me to stay in the below 30-40k markets and have more streams of rental incomes.
All the time I read on here people putting down the lower end of the market saying that there is too many headaches with that area you can't get good returns, your going to get shot. I say good you stay where you are comfortable and my friends and I will enjoy this part of the real estate market.
Sorry for going on for so long I am on vacation and doing a little drinking catching up on some reading on BP. Just my two cents...
Jim
