OfflineHey DG family,
I saw those 2 properties for sale in Michigan that Dean sent out to us a couple weeks ago that were sold shortly thereafter.
Though they had good cashflow, I couldn't ignore the fact that they are located in one of the worst state economies in the US, Michigan.
One of them was located in Detroit, which is in the top 5 most dangerous cities in the US according to Yahoo and is the #1 most dangerous city in the US according to Forbes, with a violent crime rate of 1,220 per 100,000 people.
From what I've learned over the past few years, wouldn't it be downright foolish to buy an investment property in one of the most dangerous cities in the US, located in one of the worst (if not the worst) state economies in the US, Michigan?
In order to have steady renters, you need to have a steady local economy, and from what I can tell, Michigan would be the last state where this is true. With GM and Chrysler failing miserably, how could anyone buying rental property near their Headquarters feel that their investment will be protected from the obvious economic fallout that has been lingering over that state for years now?
I mean heck, Michigan was in bad shape BEFORE the real estate crash, and they are in even worse shape now.
Can someone please rationalize why Dean thinks these two properties were good investments?
If they were in any other state, I probably wouldn't be asking this, but when I saw that they were both located in Michigan, it really spooked me out.
Thanks in advance!
DaveD,
I agree Detroit is a in sad sad shape. Until we stand up and take action collectively and scream with disgust to our city, state, federal representatives about thier own objectives instead of the peoples, the entire country could very well be a Detroit.
This isn't to say there aren't opportunities in these types of locations. I'm new to DG and am going to invest where I feel confortable. With more experience I hope to see more sense investing where Dean has i.e. Detroit. Off the cuff, with fuel costs and living expenses going up, opposite of most working incomes, people will likely move into the cities in lieu of the sprawling drives from the distant hinter lands, trying to reduce costs wherever possible. Just a guess but makes sense. I suspect also, good renters/tenant buyers usually attract same people and neighborhoods which should help protect your investment. Great management keeps investment sound as well.
Maybe someone can agree or disagree with my thoughts to help as well.
Thanks