Quote:
Originally Posted by lio45
Oh! That's interesting, and it makes the thread even more relevant.
Why Detroit then (over, say, Blighted Philly or Blighted St. Louis)?
Are you young and mobile and single enough that you could uproot yourself and move to Detroit?
Can you do some work yourself?
If you've answered yes to both these questions, you could probably follow a path similar to the one I followed for myself, and end up with a sizable real estate portfolio reasonably early in your life.
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Detroit for obvious reasons, it's cheap and there is a huge potential for future profit given the city is teetering on a big turn around -- similar to how I view stocks. You have the most potential if you buy bargain stocks, versus buying Apple or something. Apple might go up 10%, but that slightly less known stock might go up 200% over the same period.
Would I want to invest in Orange County? No. It's more risky because it requires a ton of capital upfront and the potential gains are much lower than if you risked the same amount of money in other markets.
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I could uproot myself rather easily. I wouldn't uproot to live in Detroit though and you wouldn't have to. You can get a pretty good ROI even with a property management company, if you wanted a hands off approach.
These guys I mentioned in my OP were a couple good friends of my brother in his MBA class, living 2,000 miles away from Detroit. At the time they were buying properties under $10,000, quick cosmetic renovation and put it up for lease to be sold at a later date for profit.