VERY management intensive....

[ Follow Ups ] [ Post Followup ] [ CREOnline Cash Flow Q&A ]

Posted by Michael Morrongiello on November 02, 2008 at 14:10:52:

In Reply to: detroit cash flow home. Good or Bad? posted by ryan on November 02, 2008 at 11:16:32:

Ryan;
Follow the sage advice you have heard... Location, Location, Location

No offense to Michigan BUT;

The State of Michigan right now is economically in an upheaval. Its lost SO many jobs, the unemployment rate is hovering around 10%, the auto industry is reeling, properties are selling for far < less than its costs to replace them (rebuild them, lenders are not even reposessing some properties preferring to leave them to the municipalities who have onerous code violation charges,etc. and regardless of the cash flow these properties might throw off, the MANAGEMENT INTENSIVE type of property will wear on you over time.

While the #'s look good, it will be LONG TIME for these Inner city properties in Rust belt states to show any appreciation. Unless you are RIGHT there local to them and can go out visit the areas, and stay on top of the upkeep and management, I would recommend STAYING AWAY for this type of investment.

Just my .02 cents...

Michael Morrongiello

Follow Ups:


Post a Followup

Name    : 
E-Mail  : 
Subject : 

Comments:

[ Follow Ups ] [ Post Followup ] [ CREOnline Cash Flow Q&A ]

CRE Online, Inc. © 2007, All Rights Reserved.
creonline.com