Home Buying & Real Estate Thread

[crcballer55]

 

Not necessarily. Market appreciating deals a lot with supply and demand while property appreciating deals with the demand for an area. If people see that values are going up then they're more likely to buy since it will be cheaper in the long run. In an area like Detroit where home prices have been declining for the past 50 years due to people leaving the city, there's not much incentive to actually buy knowing that the money you put down and are paying on the home are going in to thin air. Asset appreciation/inflation ultimately leads to more liquidity in the market because people are willing to buy and sell that asset class. In Detroit, people haven't been willing to buy for decades leading to the decline of everything. If investors are willing to purchase properties, builders will be willing to build new homes too.

It's not like there is anything inherently bad with Detroit. They just based their whole economy on one industry and once that industry moved, so did everyone else who was able to. Any successful city or economy knows you must have more than one product in case times get bad you have something else to fall back on. Investors call this a diversified portfolio.

The whole rental stuff could work in cities like New Orleans where they have something to bring people there, but literally Detroit has nothing to bring in outsiders thus the rental properties imo will only be for the little people already there AND you aren't going to make killing being that you cant charge too much for rent AND I would think there would be higher than usual overhead cost to maintain the properties compared to other cities.

IMO Renting out properties in the hood of a city that has something going for it is different than renting out properties in a city that is low key a ghost town lol.

Do a little research and you'll see that many companies have already started moving back to Detroit. I know Quicken Loans made a big push a couple years ago to revitalize the city and other manufacturing companies have also used some of the skill already in the city to establish an American presence.

No, you won't be able to charge too much for rent, that's true. But considering properties there are dirt cheap you can recover your expenses relatively quickly. A typical breakeven for a rental should be about 10 years in most cases. If your rent can make that back in 5 years, everything after that is gravy and you're coming out ahead after that and can cash flow new properties and let the snowball continue. It's all based on doing it in volume if you can't charge much for rent. Like I said earlier, you can literally buy up blocks of homes for CHEAP. Let's say you pay $50k for a house and rent it out for $500/mo. (Many houses in Detroit could be bought for much less as of a couple years ago when I was managing those REO's). That's about 9-10 years to recoup your $50k, have a paid for property, and come out ahead $400/mo. (saving the extra $100 for emergencies)

 

[luckyluchiano]

Do a little research and you'll see that many companies have already started moving back to Detroit. I know Quicken Loans made a big push a couple years ago to revitalize the city and other manufacturing companies have also used some of the skill already in the city to establish an American presence.

No, you won't be able to charge too much for rent, that's true. But considering properties there are dirt cheap you can recover your expenses relatively quickly. A typical breakeven for a rental should be about 10 years in most cases. If your rent can make that back in 5 years, everything after that is gravy and you're coming out ahead after that and can cash flow new properties and let the snowball continue. It's all based on doing it in volume if you can't charge much for rent. Like I said earlier, you can literally buy up blocks of homes for CHEAP. Let's say you pay $50k for a house and rent it out for $500/mo. (Many houses in Detroit could be bought for much less as of a couple years ago when I was managing those REO's). That's about 9-10 years to recoup your $50k, have a paid for property, and come out ahead $400/mo. (saving the extra $100 for emergencies)

50k homes (lets say 6 homes) would probably need 100k+ in work and still you would have to pay annual taxes (probably won't be much) on them AND worry about junkies and stuff trying to steal stuff from it like copper and other things while you are getting it ready for rental. lol IMO not worth it. Like I said buying cribs in a city thats doing something good and has a hood in it is one thing vs a city that has nothing going for it. Also people are talking about Skilled labor jobs coming back to Detroit but how many of the residents now could even qualify to work there? Sure companies opening up a HQ there would bring some transplants but still Detroit needs a total overhaul in Infrastructure and Institution creation and not just a few companies opening up. Most major cities are known for some type of industry that can employ a large # of people, when it comes to Detroit I cant think of anything that wasn't Automotive related, and with the world moving towards automatic those jobs are never coming back even if companies wanted to bring operations back to the US it would be for a few corporate roles.

 

[yeah]

 

Greater Michigan, and specifically Detroit, is already the tech hub of the midwest. Twitter, CompTIA, and a few start ups already have offices in Detroit. Amazon will be opening an office there soon, as well. http://www.cio.com/article/3001690/startups/could-detroit-become-the-next-silicon-valley.html

Detroit is not any more dangerous than Cleveland, Chicago, Racine, or any of the other major cities where black folks flocked to. There are only like 700K within the city anyways. If you stay away from ran down areas, 9 times out of 10 you will be fine, just like any other major city. I've been travelling back and forth from Detroit since I was 12. Hell, they even have weed dipensaries right on 8 Mile now.

Been saying Detroit will bounce back for a while. Gonna take years for the infrastructure and what not to be updated, but Detroit is far from dead. Hope you invested.

Detroit being the Tech hub of the midwest and not Chicago? lol idk about all that.

A report that benchmarks Detroit and greater Michigan as a tech hub. Might be too early to call it the tech hub of the midwest just based on population, but if you consider the differences in population and the concentration of tech companies per capita, it's not even close. Here are the highlights:

- 99% of Southeast Michigan Technology Companies Project Revenue Growth in 2016 (90% compared to SV)

-  Michigan has the second lowest public utilities sales tax at 0.1%, the second lowest corporate income tax at 0.6%, and the lowest rate for license fees at 0.3% among the six comparison regions. 

http://www.andersoneconomicgroup.co...st-nationally-recognized-technology-hubs.aspx

I encourage you to read and then check the source material. 

 

[SneakerProSr.]

The house my mother grew up in was sold for 8K in 2004 person that bought it sold it for 35K in 2009, the person that paid 35K rents the house out for $750 and wouldn't take 60K for it. I

There is tons of money to be made in Detroit right now. If you aren't from there or don't know someone who knows the city then it probably isn't for you.

 

[eugenile gts]

Maaaan Detroit ain't ever coming back
America honestly is like a damn parasite
Uses up all of the resources, people, and everything it can
Before discarding u and throwing whatever to the wayside
Like there's ZERO upside for America even wanting to make Detroit a place to live
It sucks
But it's the truth
All them damn houses are a restoration project
Which is cool
If u have the money to build a brand new house
Cause that's basically what u have to do
Those streets look like a damn ghost town
And the ones I saw that were actually good
We're like 330k which is also good
But man
What's in Detroit
Messed up school system
Ain't no jobs out there
Maaaaan **** gets me heated that the bay is so damn expensive and can't find something decent
There's 2 bedroom 1 bath homes with 900 sq ft for like 500k out here
America gets on my damn nerves man
My damn nerves
Why won't America just let me be great
I work
I pay taxes
I'm a good person/citizen
Why the **** does it have to make it so damn hard for folks who try and do the right thing
DAMN




EDIT: my bad I was just typing and didn't notice I was ranting

your in oakland bro?

your about to be priced out of there too

http://www.mercurynews.com/business...tarter-home-affordability-oakland-feels-pinch

every little nook and cranny of the bay area is going to be priced out. Who would've thought, oakland. where there is a murder on tv everyday. jk, but semi-srs

people who bought in oakland few years back, prob can cash out right now.

i hear the next "best kept secret" thats still "affordable" in the bay area.. affordable being the amount of home you get for $500K lol is RICHMOND. after richmond i think thats it, you gotta venture to fairfield and up.

its sad though, us bay folks consider $500K as a good deal on a small af condo or crappy single family home with tons of fixings thats only 1000 sq ft. but in richmond i saw a few semi newish townhome/condos, those 3 story types with no backyards but still you get 1600 sq ft, modern design for same amount. but $500K for that i still feel im getting ripped. take it or leave it kinda thing here.

ask yourself do you have to be in the vicinity of the bay? do you work in tech that you have to stay around the area. if not look 2 hours north or south. find a job that might pay less but cost of living is a lot cheaper.

 

[nawghtyhare]

Maaaan Detroit ain't ever coming back
America honestly is like a damn parasite
Uses up all of the resources, people, and everything it can
Before discarding u and throwing whatever to the wayside
Like there's ZERO upside for America even wanting to make Detroit a place to live
It sucks
But it's the truth
All them damn houses are a restoration project
Which is cool
If u have the money to build a brand new house
Cause that's basically what u have to do
Those streets look like a damn ghost town
And the ones I saw that were actually good
We're like 330k which is also good
But man
What's in Detroit
Messed up school system
Ain't no jobs out there
Maaaaan **** gets me heated that the bay is so damn expensive and can't find something decent
There's 2 bedroom 1 bath homes with 900 sq ft for like 500k out here
America gets on my damn nerves man
My damn nerves
Why won't America just let me be great
I work
I pay taxes
I'm a good person/citizen
Why the **** does it have to make it so damn hard for folks who try and do the right thing
DAMN




EDIT: my bad I was just typing and didn't notice I was ranting

your in oakland bro?

your about to be priced out of there too

http://www.mercurynews.com/business...tarter-home-affordability-oakland-feels-pinch

every little nook and cranny of the bay area is going to be priced out. Who would've thought, oakland. where there is a murder on tv everyday. jk, but semi-srs

people who bought in oakland few years back, prob can cash out right now.

i hear the next "best kept secret" thats still "affordable" in the bay area.. affordable being the amount of home you get for $500K lol is RICHMOND. after richmond i think thats it, you gotta venture to fairfield and up.

its sad though, us bay folks consider $500K as a good deal on a small af condo or crappy single family home with tons of fixings thats only 1000 sq ft. but in richmond i saw a few semi newish townhome/condos, those 3 story types with no backyards but still you get 1600 sq ft, modern design for same amount. but $500K for that i still feel im getting ripped. take it or leave it kinda thing here.

ask yourself do you have to be in the vicinity of the bay? do you work in tech that you have to stay around the area. if not look 2 hours north or south. find a job that might pay less but cost of living is a lot cheaper.

Like I wouldn't trip and move out to Fairfield or Brentwood and all those spots farther out
But maaaaaaan that damn traffic
Real talk I can't sit in that traffic
That traffic is just

 

[willie mcfly22]

And with all the people moving out further from the Bay, traffic jus keeps getting worst and worst. I live in Fairfield and starting at 330, earlier on Fridays, it can take up to 30 mins jus to get from Fairfield to Vacaville...

 

[nawghtyhare]

And with all the people moving out further from the Bay, traffic jus keeps getting worst and worst. I live in Fairfield and starting at 330, earlier on Fridays, it can take up to 30 mins jus to get from Fairfield to Vacaville...

I mean if I wanna keep it REAL
I could move that way for a cheap spot
My girl works for kaiser so she could transfer there
And I work for the county of San Mateo
So I can't just transfer
BUT
I have to be at work at 5am and off at 130pm so in reality I won't really hit traffic like that
But I enjoy just being at the very most 30 min from work

 

[ekrev98]

My Del Cerro project is finally done! Doing an open house this Saturday so if anybody in San Diego is interested, DM me and I can provide info. Getting some professional photos taken this Thursday so I'll post more detailed pics.

 

[Chiron]

 
A report that benchmarks Detroit and greater Michigan as a tech hub. Might be too early to call it the tech hub of the midwest just based on population, but if you consider the differences in population and the concentration of tech companies per capita, it's not even close. Here are the highlights:

- 99% of Southeast Michigan Technology Companies Project Revenue Growth in 2016 (90% compared to SV)

-  Michigan has the second lowest public utilities sales tax at 0.1%, the second lowest corporate income tax at 0.6%, and the lowest rate for license fees at 0.3% among the six comparison regions. 

http://www.andersoneconomicgroup.co...st-nationally-recognized-technology-hubs.aspx

I encourage you to read and then check the source material. 

I would never live in detroit but if you are buying property as an investment or even as a home to pass down in your family.  it's a pretty safe bet. One thing that people overlook a lot when buying is natural resources. The great lakes region will all be highly desirable if the world continues to struggle with environmental sustainability. Everybody needs fresh water. Chinese business men recognize this too.

 

[al audi]

This whole Detroit thing is very interesting. It's not new info to me but I never looked deeper into it. I have family out there also.

 

[pdino]

I think you guys are overhyping Detroit as some sort of sure thing.. It's not. There are a lot of terrible areas, that you don't want to buy in regardless of whether Detroit as a whole bounces back. Prices are bottoming out for a reason. Like someone said, they're giving homes away..

If you're familiar with the areas, and do your due diligence, I'm sure there are great investments there. 

 

[SneakerProSr.]

I think you guys are overhyping Detroit as some sort of sure thing.. It's not. There are a lot of terrible areas, that you don't want to buy in regardless of whether Detroit as a whole bounces back. Prices are bottoming out for a reason. Like someone said, they're giving homes away..

If you're familiar with the areas, and do your due diligence, I'm sure there are great investments there. 

There no sure thing in America

 

[stork]

http://www.laweekly.com/news/will-b...ng-ultimately-make-la-more-affordable-6766270

 

[ekrev98]

Got the professional pics back of my Del Cerro project. Anybody in SD who wants to come
by my open house tomorrow, DM me. Food,wine, and beer will be served!

 

[yeah]

Motivation

Beautiful house.

 

[yvespo3]

im scared to ask what you asking for that ekRev

 

[willie mcfly22]

Flip came out super nice. Congrats on that. And the open house sounds like a good time. Wish you positive vibes for the sale...

 

[703 hwy]

Nice! I'm sure it won't last too long.

 

[ybyb20]

@ekREV98 do you focus on high end flips?? And do flip only in CA?? That house def looks pricey especially if its SD im sure the list price is >1mil Sorry if someone already asked you.

 

[ybyb20]

Also If you dont mind me asking what are your margins typically on a flip like this one.

 

[al audi]

http://www.laweekly.com/news/will-b...ng-ultimately-make-la-more-affordable-6766270

yo not to get in anyones business......

but all the NTrs from San Fran or LA make 80k+ an if they don't they must have roommates..........right?

this legit has been a question of mine for a long time, i don't get how ppl live out there an are a part of Niketalk lol.......good for them they are the % who is doing well clearly


if i was from that area i would be at the bottom.

my hustle game would be no joke......not joking

 

[willie mcfly22]

^ from what I've seen, a lot of folks have houses that have lived there for years or it's been passed down by their parents who got old or have passed. But the people actually buying, some have 6-8 to a house and 5 of them are working. All family. And some jus have money lol...plus everyone isn't buying 3-4 bedroom houses for 600k plus. There are small affordable houses and condos in the Bay Area...

 

[al audi]

^ from what I've seen, a lot of folks have houses that have lived there for years or it's been passed down by their parents who got old or have passed. But the people actually buying, some have 6-8 to a house and 5 of them are working. All family. And some jus have money lol...plus everyone isn't buying 3-4 bedroom houses for 600k plus. There are small affordable houses and condos in the Bay Area...

ok gotcha

but i mean even the 1 bdrm studios are crazy........

has to be couples or just well off family helping them


an LOL at the Detroit rant............yea bad idea

 

[crcballer55]

^ from what I've seen, a lot of folks have houses that have lived there for years or it's been passed down by their parents who got old or have passed. But the people actually buying, some have 6-8 to a house and 5 of them are working. All family. And some jus have money lol...plus everyone isn't buying 3-4 bedroom houses for 600k plus. There are small affordable houses and condos in the Bay Area...

Not sure about the Bay, but I know that's definitely wrong where I live. Most people around here are just motivated and work good paying jobs that can afford an SFR.

We happened to buy our first home shortly after getting married and probably made at or below what most of our friends made. Can't say it was a good decision financially in hindsight, but I enjoyed the area and we've recovered from the crash and have since moved and make more now but with higher expenses too.