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Talk » Market » Discussing 'Wow you can't even give a house away in Detroit!'

Wow you can't even give a house away in Detroit!
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I bought an REO house in Dearborn, Michigan, a stable suburb of Detroit, in June for $29,000. (Dearborn has Greenfield Village/Henry Ford Museum, good schools, a noted community college). Put about $10,000 into it so far, appointment made for re-inspect for certificate of occupancy. Neighbor houses go for $90,000 . Rents in the area for houses like this are $650-$1000, because people are losing their houses, but they still make enough to stay in the area and so they look to rent. There are waiting lists for places to rent.

Detroit, the city proper, is in a death spiral. The brokers there have the listings but when you call they basically don't want to help you buy within the city limits, they have no confidence either.

There's at least one judge in Probate court who has made it her mission to make it tough for people to abandon properties even if they're taken over by squatters. Maintaining property tax revenues is the game there. Understandable, unless it's your money on the table.

One more thing, investors: Prices to buy services in Michigan are virtually the same as in New York City. Rip offs abound among laborers, it's a struggle to find professional services (lawyers etc) of quality. The brain drain has taken its toll (moi contributed by getting educated at Michigan's expense and then leaving).

If you want to play the REO game there are far better places to do it than Michigan, in my opinion.

{Manhattan real estate agent.}

Why would I buy a place in Detroit which has enough homes to house triple the amount of population that remain in Detroit. Sooner or later, the city would have to start bulldozing neighborhoods to bring down the number of homes in line with populations level.

Yes, they are already bulldozing in parts of California.

It's sad.

{Manhattan real estate agent.}

why in God's name did you buy a house in Michigan? I would not buy there if you gave me a house for free. If I was going to buy in a severely depressed market, I would go with Vegas. At least the city has good long term potential.

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I see someone has no life.

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"why in God's name did you buy a house in Michigan? "

Because he's a Michugenah?

"why in God's name did you buy a house in Michigan? "

Fluter probably bought because he or she had already seen six properties.

"Maintaining property tax revenues is the game there. Understandable, unless it's your money on the table. "

yep. i'd only go for a REO in that are with a very long tax abatement (15-20 years).

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