Well its been 5 or 6 years since Chrysler went belly up and I welded on your gas fired . I had 4 sfr houses in DETROITS affluent northern suburbs-3 rented-valued @300k each and 1@ 125k backin 1999 ( and a 550k mortgage). They Dropped to 175k each and 30k in 2009/10.
I Stuck with them. Dumped 1 250k. . Used cash to pay off primary mortgage. Down to 2 @ 300k again and 1 @ 75k. So it did come back. Wrestled with (in 2009) ” Hey Cathy, (wife) which would u rather have, a house in Detroit we paid 280k for now worth 180k, hoping it goes back to 280k in 5 years or a house (Talega-San Clement) in California once worth 600k (2005)now on sale 325k, hoping it goes back to 600k in 5 yrs?
“I ain’t movin-u go” Well the 5 years is up but Talega smallest 1344 sq ft 2 br5 condos are not 600k but maybe 400k. So She was right and Detroit has been named the very most reasonable big city out of 85 with Grand rapids Mi being #5 in a recent news release.
I considerd buying 5 rentals for 50k each to have lifetime income and write offs, What convinced me to pay off my house was my age (63) my income 15k per month and math. So I explain it like this…Each rental even at 12-15% return or in plumbers terms 800 mo rent minus 300 taxes and up keep gave 500 mo net x 5 or 2500 mo net on 250k. Sounds good to u who make 1/2 or 6% in San Diego on 1 br ? Heres why I decided to use the money to forget the 5 rentals.
1, My job @ 15k ( 7 days 12 hrs @33.36 per Chrysler) is the equvlant of 30 repeat 30 rentals @ 500 net.
2. So why would I want to start working harder for a living by burdening myself with 5 more headaches ?
3. So I paid off the house, and the 5 I didn’t buy are worth 100k each or more.
So still no regrets…I got about 500k liquid if I dump and I think I will winter in San Diego.
But for all you Donald Trumpps out there, a slew of 75k rentals sfr in Holly Michigan should produce the 15% you seek as well as several fringe locations in Norther Detroit area. If u need any help looking let me know…you’all have a friend for life in Motown cause this board helped me when I was down and out and my kids were sent there like babies whose mothers gave them up so they can have a better life elswhere. God bless this board and God bless Bearish Girl.
So glad to hear that things have worked out for you and your family, BP! Sounds like you and your wife did what was right for yourselves.
Correct me if I’m wrong, but did you say that you’re working 12 hours/day, 7 days/week? How are you managing that, especially if you’re 63 years old?
Also glad to hear that Detroit seems to be doing better. It is just that the housing prices are going up, or is everything starting to turn around? Still getting the artsy/gentrification crowd coming in? I sure hope so!
How is your son? Did he end up moving back there to be with you guys? Is your daughter (and grandchild?) still out here?
All the best to you and your family, birmingplumb!
Thanks Ca renter! Real nice to be replied to here. Detroit has a new mayor and Dan Gilbert investing like Mike Illitch. But make no mistake about it- the talk in 08 about we need to deversify we need to be like Pittsburg and reinvent itself- was hot air- Detroit is and was and will always be the leader of manufacturing in the free world- that said we are a boom or bust town- and since we are booming now- and let me give you the data – Jefferson North builds 1000 Jeeps a day sold @ 40k average of which 12k is gross profit- so after they include the lawyers, accountants and foreign pimps – the 3.6 billion my plant alone nets yearly is turned into 715 million profit for 2014 for all of Fiat . So that is the truth. Thats where the money is-not plumbing- auto production.Too bad Obama gave us to a pimp of men. Motown
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