I too have stayed out of Detroit Proper thus far, no good reason other than the risk/reward factor. I

I'm trying to figure out what the hidden factor is. 

First thing to factor is the [usually high] monthly fees to own a condo. 

It is an 18-plex in a town 15K people with a very high rent to owner occupied ratio (renter being on the high side).Property is on MLS listed at $749,000Deal Summary:18 units x $500 per unit = 9,000 gross monthly/108,000 yearlyVacancy factor I am using is = 5%Total Operating Income = 8,550 GM/ 102,600 yearlyTotal Operating Expenses = 4,412 monthly/52,950 yearlyAs a percentage of Income 51%NOI = 4,137 monthly / 49,650 yearlyIn my analysis to calculate what I should be paying I am taking the NOI / my expected CAP RATE, which in this case would be 49,650/.10 = $496,500In this back of the envelop math I view my max offer price (on the assumption that I have good data on both the rents and expenses side) as $496,500 to achieve a 10% CapRate.I would really appreciate feedback as to if I am on the right track or I have totally missed something here.ThanksRob

The issue here is although there are some great investments here, the owner/occupant factor is making it tough because the houses in my budget are either too far a commute from the City or not in the condition of something we’d wed want live in the next few years. 

When changing something try to control what and when you change things so you can figure why the results were different.Also factor in other variables like the weather, the recent unemployment details, a factory closing, a new housing development being started, etc.Good hunting.John Corey

Just spoke with an agent who mentioned that the best option is to buy land, even demolish a home and build a large multifamily building using a construction loan...Account Closed - the specific goals are to purchase the first income producing property which will pay for itself and raise rents appropriately for an built in inflation factor. I

This was in the late 19th century, when its factories cranked out guns (Colt, Gatling, Browning, Sharps), tools (Stanley), clothing, textiles, cars (Pope), bikes (Columbia) and all kinds of goods.

(Compared to stock investments where luck plays a factor) I am 20 years old and at the moment I am educating myself in real estate in hopes to establish a business and this seems to be the right place!

I spent a short trip in the Middle East studying Islamic Finance a few years ago.