Most days when people talk about $1,000 in relation to their house they are referring to their monthly mortgage or perhaps repairs to the home. But what if I told you, you could buy a house for a $1,000? Would you do it or would you just think I’ve finally taken the last step to Looneyville?
This is exactly what is happening in the Detroit metro area. When you have a city designed to house almost 2 million people, but only 700,000 live there – then there’s a problem. Too many houses and not enough people. One such case saw a couple buy a 3 bedroom 1,500 square foot house in a middle class Detroit neighborhood for only $1,000! Amazing! The house however did need repairs. A furnace, new plumbing, and windows were all on the to do list.
Even with about $30,000 in repairs they were able to settle down in a nice neighborhood with an extremely low mortgage.
Other cases have seen homes in this area go for as little as $500 and $600! It’s really an amazing shift that has occurred in this part of the country. Records show that the city of Detroit is set to foreclose on 80,000 home in 2015. This sounds like something directly out of an apocalyptic novel where neighborhoods and cities are turned into ghost towns.
So the question becomes – Would you buy a house for $1000?
Knowing that repairs will be needed and that people are leaving the area by the droves? It’s a tough situation that the city of Detroit faces. The brave souls that are moving back in, fixing up the neighborhood and transforming the city will reap the rewards if they succeed. What if their $1,000 homes turn into $300,000 homes in the future?
Sometimes real estate investing requires vision and a long term mind set. Too many people are looking to buy, renovate, and flip. While many have done well with this mentality, it’s refreshing to see others that want to invest not only in a home but in a neighborhood, city, and region.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129