All Forum Posts by: Richard Dunlop

@Bob E.

I don't understand the appeal of going out of state to get 10% -15% return.

Can't you get that in your Arizona market??  I wouldn't invest across the street for a 50% return since I can get 200% 300% and more in many areas within 10 miles. 

What part of Michigan? I buy properties all the time for $3000 and less that had bank loans previously for $70,000 and higher. The actual cash value of these might be $15-$25,000 and the distressed sale much less.

 Not at all common!

I invest in Detroit and in seven different suburbs but have always tried to stop people from buying properties in the area unless they were partnering with a knowledgeable local investor.

Detroit has houses better than 95% of the cities in the US but it also has houses that are worse than 95% of the cities in the US both inside the city limits of Detroit!

Block by block is too general. I usually don't buy a house unless I like the neighbor.

Knocking on the door of the house next door, sometimes it is the solution when I meet a neighbor that has lived there 30 years. BUT sometimes it is obvious THE NEIGHBOR IS THE PROBLEM!

Economy is GREAT. Compare Average weekly wage of Wayne County of $1059 (Detroit is in Wayne County) with the Average weekly wage in Clark County of $843 (Las Vegas) and Wayne county increased by 3.1%. Clark County increased by 2.4%.

Link is Here

I invest in Detroit and in seven different suburbs but have always tried to stop people from buying properties in the area unless they were partnering with a knowledgeable local investor. 

Detroit has houses better than 95% of the cities in the US but it also has houses that are worse than 95% of the cities in the US both inside the city limits of Detroit!

Block by block is too general. I usually don't buy a house unless I like the neighbor. 

Knocking on the neighbors door, sometimes it is the solution when I meet a neighbor that has lived there 30 years. BUT sometimes it is obvious THEY ARE THE PROBLEM!

I've heard quite a bit about THAT market!

I talked to a lawyer that gave back 2 out of 3 she had bought in order to get an extension on the one she wanted to keep. She indicated that they were picky but she wasn't sure if they had it out for her only. She made a big stink when they put in the policy of giving a 50% discount on their bids to their friends.

You are bidding against someone that is only paying with Monopoly money. (One half of their actual bid)

The number they use in markets that don't perform up to the 20% rule we use in Detroit. What % of your all in price can you get as a monthly rental rate?

I know your market got the Japanese boost as you have pointed out previously and I do believe you are experiencing and will continue to get a Chinese boost (as is much of the West Coast) but then you and I would disagree from there.

I believe your market has to out price paying tenants at some point while you seem to imply that the "irrational exuberance "can continue indefinitely.

@Bob Bowling the people you are scolding are not 1 issue investors, I speculate that they typically invest using several metrics.

I invest in Detroit BECAUSE of the appreciation the Cash Flow is great also. I expect BOTH to be better than anywhere for the foreseeable future.

The question I would ask (Just ONE of many) "Is why would ANYBODY invest in a market where the average weekly wage is lower than Detroit.

 Wayne is the County Detroit is in.

Is this the only metric I should use?

Of course not! Taking everything together I'm glad I relocated to Detroit. FROM one of your favorite markets California.