Detroit. Good idea or crazy as hell?

haha yeah..call it what ya want..most of the the 10k houses in Detroit would fall under trap house in my vocabulary

> lmao "trap star". This new slang is definately apt for this thread.Trap House (from urban dictionary)Term used to define a crack house, or the surroundings in which a drug dealer or (trap star) would use to make their profit.Also refered to as "up tha way"."I made a 100 thou' in my trap house,---trappa's goin' in trappa's comin' out..."-Gucci Mane

...encourage anything having to do w Detroit?> prices are low, danger is high.Detroit Housing's for Sale, and Global Investors Want InBy Chris ChristoffJanuary 24, 2013 Business WeekThe Motor City may be synonymous with scorched-earth urban decay to many Americans, but the market for distressed real estate properties there is an exception. Speculators from the U.S. and abroad are scooping up Detroit homes, in some cases by the hundreds, for as little as $500 at Wayne County’s tax-delinquent property auctions. The county sold 10,461 of the 18,897 Detroit properties offered last year, according to public records. “Detroit is the hottest thing happening,” says city native Jasmine McMorris, who has purchased 332 homes in the past two years for an average price of $2,500. She’s rented some at a profit while selling others to investors as far away as Australia and Cambodia. “No place else can I buy a house for $1,000 and put in $3,000 to fix it up and get a 40*percent return on my investment monthly,” she says.In markets such as Chicago, Miami, and Phoenix, Blackstone Group and other private equity firms have bought foreclosed houses and turned them into rental properties. In Detroit, the foreclosure problem is exacerbated by a large number of properties seized by the government to recoup unpaid tax bills, says Alan Mallach, senior fellow at the Center for Community Progress, an advocate for land reuse. Mass sales can exacerbate instability by attracting landlords who rent without maintaining homes or paying property taxes, Mallach says.In 2011, 36.2*percent of Detroit residents lived below the poverty line, compared with 14.3*percent for the U.S., according to Census Bureau data. About one-quarter of the city’s housing units are vacant, according to data in Detroit Future City, a 50-year strategy developed by the Detroit Works Project.With an influx of buyers, property values are ticking higher, if a bit behind national averages. Not including tax sales, home prices in the city of Detroit in November were up 3.4*percent from a year earlier, compared with an 8.6*percent rise for the metro area and an average 4.8*percent increase for 30 U.S. metro areas during the same period, according to mortgage data firm FNC. Wayne County’s chief deputy treasurer, David Szymanski, estimates some 20,000 county properties will be auctioned this year.“There’s going to be a big turnaround for Detroit, and I want to be part of it,” says Peter Grosso of New York, who paid about $90,000 for 29 Detroit homes at an auction last October. He plans to rent them for income over the next decade, then sell at a profit.

I have noticed a price increase of 15-20% since this winter when I started looking.
I am no longer looking in Detroit but, I was impressed with the looks of a lot of
neighborhoods on google maps. I imagine investors from thirdworld countries are
looking at the same thing, and seeing well built houses in a major American city.

There is an ebb and flow to modern economics that could bring Detroit back
quicker then one would think.

From a crime standpoint that stuff can change quickly too. I am only 32 and I
have seen change, in places that you would never really want to even go, let
alone want to live. I imagine no one on this forum would have wanted to live
in bogota colombia in the 80's ( well some of us may have LOVED it!) But now,
by any metric, it is pretty safe. Harlem NY, in the 80's and early 90's if you
missed your subway stop, people would just preemptively call the cops and
say I am about to be robbed and shot. jkjk Now people are buying up tons of
shit.

I just had a house in so. central la, I do not know how bad that place was in it's
hey day or if hollywood just sensationalized a lot of it but, I did not have any
problems 2 years. Gang shit is noticeable but it is not that bad.

I know Detroit is a different animal at the moment but, shit could change in 10
-20 years. A 15k home might be worth 150k in 20 years. Fuck the prices can't
go lower.

Nice post. I think a 25k hse may be worth 50k in 10 years possibly. Doubling value in a decade would be hopeful, averaging 10%/year. For detroit that wld be v optimistic. Some of these trap houses/10k shiteholes may not ever be worth anything though. Southern California R.E., even in the ghetto, is a niche market that hardly knows a ceiling. [south LA was ok, when given a choice... I tried to stay north of Pico blvd...]

What area did ya now target Slumdog... Saginaw, Jackson, Lansing? those are affordable semi-decent areas. been checkin' Jackson lately seeing what's available for @, or under, 20k. the thing is, a decent horticulturalist w/ some fixer-upper abilities has a major advantage over a contractor w/ no medicinal plant abilities, imo. A few lucky investors have both skills!!!

Job/investment-wise, can you say slumlord... slumdog?

There are some good ones to be found in the "hood" of jackson abe. my brudda got his for $5,000.

wow 5K that's cheap, often w/ no plumbing, furnace or copper.

really have no experience w waiting-out short sales, h.u.d homes, and tax or forfieture sales, but I have lived in the hood. going to a new city it takes a minute to discover how hood, hood is. I look for fringe places w unique details (where is the electric meter positioned?), worst house in best hood. Adjacent vacant lots are choice in the city. Even 10k wld be nice if it isn't a money-pit. since I prefer cosmetic fixer w modest move-in repair budget, in addition to above... Seems like 15-25 is a realistic low end range among all four towns.

abe supercro said:

Nice post. I think a 25k hse may be worth 50k in 10 years possibly. Doubling value in a decade would be hopeful, averaging 10%/year. For detroit that wld be v optimistic. Some of these trap houses/10k shiteholes may not ever be worth anything though. Southern California R.E., even in the ghetto, is a niche market that hardly knows a ceiling. [south LA was ok, when given a choice... I tried to stay north of Pico blvd...]

What area did ya now target Slumdog... Saginaw, Jackson, Lansing? those are affordable semi-decent areas. been checkin' Jackson lately seeing what's available for @, or under, 20k. the thing is, a decent horticulturalist w/ some fixer-upper abilities has a major advantage over a contractor w/ no medicinal plant abilities, imo. A few lucky investors have both skills!!!

Job/investment-wise, can you say slumlord... slumdog?

Click to expand...

Yeah that is my end game. Roll everything into rentals. I have been using Craigslist as a barometer the last few months to study/pick areas. It seems to me with very minimal cosmetic work ( nice flooring, landscape work, artsy interior painting) you can easly have the most appealing houses on the rental market of that price range and area. Market everything to appeal to a womans brain and your stuff won't sit vacant for that
long. ( I hope)

Pico blvd? Yuppie! I lived in LB for the most part but, urban farmed in the hood. Interior and exterior window bars, door bars and carry a big canof bear mace, and everywhere is safe. (almost)

...wasn't into growing when I lived in LA. always wondered what it'd been like... exciting I bet. something about a new house and and new project that gets me off ma arse n motivated. it's that make or break, put into the game coach... I-Can-Do-It mentality! If I don't have something new on the line, well you see...

Skin in the game, they call it.

Wah wah, think I know someone that consulted on that grow... Circumstance sounds familiar...

I would be surprised if you couldn't find something reasonable for 12-15. Bro had an empty fenced lot for a next door neighbor. House-o-the lord for other neighbor. But street name turned all potential buyers away I'm sure. In jackson I wouldn't buy anything on adrian, steward, greenwood, chittock, maple, williams. Always houses for sale there because the hoodlums are rampant. Maybe keep your eye on francis st as it gets closer to vandercook.

I've lived in Detroit and Flint both. I know neighborhoods in both cities that I would and wouldn't live. (pontiac too.)
The list of pros and cons are literally endless.
I'm interested in what Detroit is going to do in order to move forward.
I'm also interested in what Wisconsin and/or Minnesota is going to do.
If either state legalizes without holding a grudge toward felons, then I'm there.
Michigan doesn't realize that some of us felons should be considered experts.

Its pretty stupid that your past should effect you ability to obey the law in the future. I'd like to see all pharmacy and liquor store employees follow the same rules for a while.

Do you guys think there are a lot of grow busts in Detroit that do not make the paper?
It seems like there are special circumstances around the busts in Detroit that might make
them news worthy. Like growing at a chop shop or growing in a vacant or pumping 450
lights. I notice some shootings/murders on crime maps that do not even get a write up.

I would imagine that there are more robberies by non-leo than robberies by leo.

On the plus side, one person I know who lives in detroit was pulled over by a state trooper after smoking a number in their car and having one on his possession. The officer told him to get a card, keep it at home and have a nice day.

For all those that Badmouth Detroit there are some decent areas where houses are really cheap, picked up 2 on my own street for 5 thousand each and they were good to go hot water tank furnace ect... didn't need to do much to them, you just have to look im in southwest and my neighbors are all cool so I lucked out. Besides the fact of having 2 rotts and a small arsenal of medieval weapons since mmj and guns don't mix, I like up close and personal anyways

http://www.freep.com/article/20130423/NEWS01/304230076/ken-cockrel-re-election-election-detroit

Here's a step in the right direction. We need these pieces of shit out of office. This fucking clown has been useless.