Detroit, MI Bungalow

For less than the cost of a decent used car, you can snag a 3-bedroom bungalow in Detroit. Listed at $1,900, this intact house is actually quite typical of some of the REO deals in this troubled city. At $1,900, this place is priced about 98% lower than its Zillow.com estimated value of $82,500! Clearly Zillow.com has an overly optimistic view of many properties, but this one takes the cake. The former owner paid $78,000 for the place just a few years ago (10/29/2004).


From the looks of things, this house is generally intact and is in need of some work. An educated guess here is that $7,000 to $10,000 of work will get this place into great shape. So, $1,900 + $7,000 = $8,900… for a renovated house (albeit in Detroit). The neighborhood does not look half bad though, so this place could make a decent rental property. This block and the surrounding blocks, unlike many parts of Detroit, appear to have mostly intact houses… not tons of vacant lots (one downside, however, is that there appears to be an auto junkyard a block away). It looks like this house could rent for $600 per month in this market – paying for itself (including renovations) in a little over a year. BUT, the ongoing decline of the auto-centric local and regional economy likely means that vacancy rates will continue to climb in Detroit… so, if you find yourself struggling to find a tenant, you’d have to drop your rent a bit or deal with it sitting vacant for a while (not a good idea in a city known for lots of copper theft and vandalism). It could be decades before Detroit’s economy is chugging along at a decent pace again. But still… it’s only $1,900(!!)… This place might be a good buy for an investor interested in buying and reselling on a land contract, rent-to-own, or similar scenario after some basic renovation work. Definitely worth a look if you’re in the area.



The basics...
Address: 9394 Lauder Street, Detroit, MI 48228
Current Listing Price: $1,900
PREVIOUS Sale Price: $78,000
Size: 3 Bedrooms, 1 Bathroom; 930 square feet
Lot: .11 acres

http://www.realtor.com/realestate/detroit-mi-48228-1099748784/