[lio45]

As to the topic at hand, I can't offer a simple answer.

First off, to a slightly different question ("would I pay $25k for the house in the link above"), the answer is "hell no". There's basically an extra zero in that price in my opinion. A house like that in a neighborhood like that should be pretty much free (paying off a few grand in back taxes is what I'd expect to have to disburse for acquisition).

But let's instead assume we're talking about $25k houses in more attractive Detroit neighborhoods than that... the answer is, I'd be interested _IF_ I could move to the city. And since I'm already spread too thin (I'm actually looking to sell my two duplexes that are both isolated in order to get down to only two portfolios that are very concentrated), I wouldn't start a new portfolio in another city.

I was in a serious relationship with a Yankee for a while and after checking out (and passing on) Burlington real estate (incredibly overpriced), I expanded my radius to Albany, looking at the most blighted neighborhoods and I came within a hair of buying buildings there. So, yeah, if Detroit was within reasonable distance that I could show up regularly and/or live there part-time, I would probably be interested, since I was extremely seriously interested in a very similar market.

Alternatively, if Detroit didn't ever freeze in winter and I could get Detroit properties that are as solidly built as 1950s Florida ones, THEN that's stuff I could consider managing somewhat remotely. Northern-style buildings, though - nope. Not worth it. The cap rates for me to even consider it would have to be so incredibly attractive that locals would inevitably step in before I'd bite.