The key words for Detroit are "value" and "cashflow". Where
else can you buy a house in a large metropolitan city for
$15 000 and
rent it for $700/month? The average home price in Detroit was $98 000 as recent as 2003. It reached a low
of $11 500 in 2009. It was $17 667 a year ago. Today the
average price is about $25 000. There are better prices
available to those who know where to look. Do you think there is
some opportunity there? I will find
you solid rental
properties and give you the team to succeed!
Detroit is a city that requires much research. I am visiting Detroit
monthly, getting to know the city, and looking for
opportunities. Crime is widespread in the city and almost all neighborhoods are dotted
with vacant homes. Predicted
continued population decline in the
future means that growth will likely be focused in certain key
areas.
Any property purchased should be made secure immediately
and be rentable to avoid vandalism and damage by squatters.
Detroit is attracting thousands of new jobs in rechargeable battery
technology and production, new investment by the
automobile industry at
their current Detroit assembly plants, and even the production of
high-speed rail. I like neighbourhoods
near some of the more
aggressively redeveloped areas such as the university and
downtown. The Detroit suburbs also offer
much opportunity.
Detroit filed the largest municipal bankruptcy in U.S. history in July
2013. The process has been slowly working through the
courts and Detroit may emerge from bankruptcy this fall. The
largest hurdle has been the pension debt owed to past city workers.
There are many who want this bankruptcy resolved. Called the
"grand bargain", national and regional foundations have committed
$466 million to the city. The state of Michigan has also pledged
an additional $195 million to help cushion pension cuts and allow
the city to exit bankruptcy. I believe that this entire process is very good for Detroit.
Detroit has been in decline for several decades and bankruptcy is
the catalyst to allow future positive growth and change.
