This blog has no limits. I'm going to do a post on distressed residential Detroit real estate. I was just browsing the FDIC website and I found a
database of foreclosed IndyMac properties. I
found a 1100 square foot 3 bed/1 bath single family home built in 1986 for $600 (pictured below). Hey it might need a little work and who knows about the neighborhood but $600? Thought it would be interesting to value this as an income property. Wondering if someone could rent out the rooms for $25 a month w/ utilities for an annual $900NOI/$600 or 150% cap rate and sell it in 3 years at a 30% cap rate for $3000. That's a gain of 400%! That's not looking at comparables and historicals though which I found at Zillow.com (hopefully a reliable online source). Here's the original
13722 Moenart property which looks like it sold for $3,600 in 10/05, and $5,850 in 4/08. Close by there is a 1182 sq foot 3 bed/1 bath house at
13402 Bloom selling for $1,500, a 1350 sq foot 4 bed/2 bath at
13781 Moenart selling for 2,000
1-3,000, and a a few blocks north there's a 500 sq foot 3 bed/1 bath at
17190 Caldwell selling for $900 which sold in January, 2008 for $16,800! The next listing shows how the auto industry is killing employment and property prices. Across the street there's a 11,600 sq ft auto mechanic/tool-die/BMW part warehouse at
5431 E. Davidson on sale for $1,650,000 with auto parts, machinery and 9 lots included. What if this city becomes the 'electric car' capital of the world and global investment invades the city again?? I will come back to this post in 5 years. If you live in this area or have any views comment below. I guess the main point of this post is check out all of the foreclosed properties listed at FDIC.gov it's crazy. Also here are some recent articles about Detroit real estate.
How low can homes go? Try $0 (DowJones)
"Earlier in the day, I'd previewed the North American International Auto Show, where the car of the year was a Hyundai. A Hyundai Genesis, to be precise, with an MSRP of $37,250. Here, even a Kia or a Pontiac listed for $16,000. By contrast, the median price of a home sold in Detroit last month was $7,500, according to Realcomp, a Farmington Hills, Mich., multiple-listing service, down 50 percent from last year. Mason counted 1,228 homes listed for under $10,000, 209 of which were under $1,000. "Many of them are in pretty decent shape," he said, "and some can be lived in."
Why Contrarian Investors Should Consider Detroit (NREIonline)
View Larger Map
Related Post:
Distressed Detroit... (July, 2008)
