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Donald Stevens' Blog

By Donald Stevens 909-428-0503 | Agent in Riverside County, CA
  • How Vacant Is Detroit?

    Posted Under: Home Buying in Detroit  |  July 27, 2010 10:21 AM  |  2,082 views  |  No comments

    Reprinted from http://blog.mylandlordinsurance.com.

    There are a lot of investors looking at Detroit as a great place to buy cheap real estate. The thinking is if you can purchase a home with renovations included for $35,000, you can quickly turn a profit. Most homes in Detroit are brick, beautiful, 2 stories, and usually over 2,000 sqft. As a section 8 property the going rental rate is between $1000-$1400 a month. That is roughly $12,000 a year. In three short years the property would be paid and any future rental income would be 100% profit with the property having a resale value of about 50,000 if rented with a good tenant. Sounds great.

    There's few problems with this plan:

    (Summarized)

    Insurance and Taxes

    27% of homes are vacant

    Lack of employment opportunities

    Solution:

    Rebuild City from Center. Consolidate public resources and reduce supply by demolishing vacant homes.

    To get a more detailed description please read our blog. http://blog.mylandlordinsurance.com

  • Update from Carla, my future client

    Posted Under: Home Buying  |  October 26, 2009 4:29 PM  |  445 views  |  No comments
    Update from Carla.

    "Hello Mr. Stevens,
     
    Here's a link that you can click to show how they are trying to cope with the foreclosures in Las Vegas www.lasvegassun.com/news/2009/oct/15/nevada-bucks-nationwide-downward-foreclosure-trend/
    **also view the comments.
     
    I lived there 2 years ago. I know first hand that some of the new homes weren't selling and the developers rented the homes out - this was on the news. Apparently, this is what they are doing now to curb the destruction of these properties. Here on the west coast, the people of foreclosures (I'm not sure if I should say victims) they are also flooding the homes, pulling copper wire, removing cabinets, toilets, holes in the walls, removing lighting fixtures.....In fact, there were scams where people would rent out million dollar homes for $1,000 a month.
     
    I now see why the prices are slow to come down here, they are not releasing all of the homes. There's also rumor that it has something to do with new legislation that maybe there will be some kind of RTC to take these properties, or something to do with getting more TARP money. BTW, one of the properties for condos, I think it's Flamingo Palms, the homeowner assoc DOESN'T own the land. These condos once sold $100K+, now some are as low as $10k but the homeowner dues are $400+ monthly for legal fees.
     
    Thanks,
    Carla"


    The Homeowners Specialists
    www.getgliga.com
 
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