Schools, Degree's, College Debt Could Have Bought A House.

reply to post by DragonsDemesne


The reason I mentioned houses is the fact that they are going for ridiculously low prices. In the Detroit area, and surrounding suburbs area, many of which are very good for living, a single family bungalow are going from 14k to 30k, with not much work the needs done inside. Rental per month between $550 and $900 for those homes.

Simple math here, let's say you buy a home for 16k, need to put 3k into it, then rent it out for $650 per month.

How long does it take to recover your investment?

Of course you have insurance, taxes and upkeep, but the home will pay itself off in less than 4 years. Now you have the house paid for and everything coming in after expenses is pure profit.

Times that buy 10 homes, equals 200k investment that will pay itself off in less than 4 years.

So now you own all the homes outright 4 years later and have $6,500.00 per month gross coming in, or $78,000 dollars a year, before expenses, Net maybe around $62,000,00

I did not figure in the appreciation value of these house either.

What is really insane about the whole housing deflation is that to replace these types of homes, a typical single family bungalow insurance value is about $130k to $150k to replace, so if something happened then rebuild cost is $130k.

Your right though buying homes may not be for everyone, but I am showing people that even in down times there is still good deals and opportunities, if people want to see them.

Wait, what? Did you miss a zero on the end of those prices? If not, Detroit must be freaking broke. I saw just today on the way to work new single-bedroom houses being advertised for $120k. (I'm in Canada) The house I am working on right now is going for $360k, and it has 4 bedrooms and a basement. The 3 bedroom house our family of 5 lives in was appraised for property tax purposes somewhere around $250-300k, but I'd have to ask my dad for a better number than that. None of these examples had garages or big yards or anything either.

Hmm.... maybe I should save up and become a slumlord in Detroit :p On the other hand, if I was to share my hourly wage (which I won't because it's embarrassing!) it would still take me forever to save that much, even living with my parents.

reply to post by DragonsDemesne



Remember these are foreclosed homes I am speaking of, and the prices I am suggesting do not last long, so an investor must be on the ball and act fast.

Investors are also turning these homes over and making a quick 15 to 20k per home, if they do not want the hassle of renting.

I have also seen investors from the UK come in and buy up 20 to 30 homes at a time for investment purpose's.