All Forum Posts by: Richard Dunlop

Skip Detroit! We've got that covered.

http://www.biggerpockets.com/forums/311/topics/198698-detroit-and-michigan--1-defender-answers-questions?page=1

Glad I left Orange County California to invest here.  But hoping everyone else goes somewhere else.

I think it's included in the $41,000.00 course. 

That's normal wear-and-tear in Detroit

Sounds like a Wholesaler

Keep your car locked in the garage!

(Disclosure/Nondisclosure: I have no connection to the property I mention in this post I am not the owner and do not know the owner.) 

Your statement was made real to me about eight months ago with this property:

http://www.zillow.com/homes/14235-Reeck-Rd-Southgate-MI-48195_rb/

14235 Reeck Rd Southgate MI 48195

I was returning from Sam's Club and stopped at a yard sale at this house.  In conversation I discovered they were selling the possessions of their recently passed mother because they had just sold the house.

A beautiful house on a full acre on the Golf course. I timidly asked the sales price and was shocked to hear $100,000.  In a desirable area of Detroit it would have been a $225,000-$275,000 sale. (there are no apples to apples comparisons) I was again shocked when I got home and saw that that sale was in line with the market.

Is Trenton a good example of my earlier question "Do the garbage areas insulate Trenton from the progress in Downtown Detroit?"  The Down River communities have to contend with SW Detroit, and then River Rouge and then Ecorse as insulation.

The numbers above do not represent appreciation (related yes) but are an increase in the median sales prices. (one half above / one half below) 

The numbers I do want to call attention to is Wayne County Median $114,500.00.  That is not a desolate wasteland. (there are definitely sections that are desolate wasteland)

When someone from out of state sees a house for $5000 or $15,000 or even $25,000 ask why.

If a house in a $50,000 neighborhood needs $75,000 to put it back together, how much is it worth? Today?

@Jennifer Streamer

I was on the run last night when I acknowledged your post but I did want to answer your questions in more detail. I agree with the points you are making and they correlate well with the points I have been making.

The article you posted has the best proof I’ve seen so let me pull out all the numbers to illustrate the points you made and that I have been making.

http://www.crainsdetroit.com/article/20150615/NEWS/150619910/realcomp-median-home-sale-prices-rose-15-2-percent-year-over-year-in

One Year June 2014 to May 2015 gains in Median Sales Price

Wayne County (Mostly Detroit) 43.1% from $80,000 to $114,500

Macomb County 9.6% from $123,000 to $134,825

Livingston County8.6% from $197,950 to $215,000

Oakland County5.9% from $193,600 to $$205,000

Bill I hope you take the time to read the whole thread.  I have answered point by point most of the objections Scott K made.  I have a couple more points I will address but didn't want to be only answering his rants.

Do you agree with my answers?

When I buy a property I talk to neighbors first.

I walk and drive the neighborhood

I don't buy in War Zones!

But $15K does not mean a war zone (It could be but not necessarily so)

See my thread where I'm attempting to answer in detail all questions people have about Detroit and suburbs.

http://www.biggerpockets.com/forums/311/topics/198698-detroit-and-michigan--1-defender-answers-questions?page=1