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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MoneyPenny who wrote (175153)	1/5/2009 2:10:03 PM
From: Think4Yourself	Respond to of 306849

Yes, properties < $1,000 are everywhere in Detroit. There are thousands of them, maybe tens of thousands. The city is basically giving you the property in exchange for assuming the back taxes and/or to get the city property tax revenue going forward. Biggest problem is they aren't in areas where people who can afford to fix them up would want to live. It's usually a rotten deal for anyone who doesn't want to live in that area.

To: MoneyPenny who wrote (175153)	1/5/2009 2:11:25 PM
From: GraceZ	Respond to of 306849

Baltimore had a blighted area near the harbor when I first moved here in the 70s. The city condemned and fenced off the area for a few years and then sold each house for $1. You could only bid if you planned to live there for a period of time (something like 5 years) and had sufficient funds to fix the place up. The project was a fabulous success as the area became one of the most desirable areas to live. I have a good friend who bought one and started his own personal RE dynasty from that one house. Several times the city considered doing this with other similar blighted areas but the objections were always the same, that people got rich! Many people who did this were certainly not rich when they started including my friend who lived in the house when it was floor joist, studs and a hot plate for a kitchen.