Crowdfund Homes in Detroit?

[bbit]

Was thinking the BTCitcoin community should snatch up some homes in Detroit after reading this article:

http://homes.yahoo.com/photos/yahoo-homes-of-the-week-homes-listed-for-less-than-5-000-slideshow/

Detroit metro home values are expected to rise 4.3 percent in the next 12 months — the current median home value is $89,600 compared with $161,100 for the U.S. — but more than 400 single-family homes are currently listed for less than $5,000.

Could use BitcoinStarter to purchase a few with tier rewards being whatever we want to come up with as a community.  Anyone think its a good idea??

[TheFootMan]

There are a lot of things to think about.


Educational information:
http://www.businessinsider.com/buying-cheap-property-in-detroit-2013-7

[TippingPoint]

I suspect that Detroit is a lost cause.

Buy property there and get taxed to death.

[Littleshop]

I suspect that Detroit is a lost cause.

Buy property there and get taxed to death.

Taxes would be an issue but not that bad.  The problem is that there are too many (bad) houses and not enough demand.  Unless Detroit does something to pick up demand the problem will continue. Rentals in Detroit are super low as well with tenants that can do more damage than the rent. 

[TippingPoint]

Detroit is approximately $20 Billion in debt, and

Half of Detroit property owners don't pay taxes
http://www.detroitnews.com/article/20130221/METRO01/302210375#ixzz2b0fPi2kZ

Delinquency is so pervasive that 77 blocks had only one owner who paid taxes last year.

Detroit has the highest property taxes among big cities nationwide and relies on assessments that are seriously inflated. Many houses are assessed at more than 10 times their market price, according to new research from two Michigan professors.

Billion with a B

[CIYAM]

There is a way to make money out of extraordinarily cheap housing but actually it does require quite a bit of investment (have seen it done in Australia before).

Basically you buy *every* property in a small street then end the leases for all existing tenants (in a legal and reasonable way) and after they have left rebuild all the houses (and later be very fussy about the new tenants that you let move in).

If you can do that well (and the street is not surrounded by other bad streets) then there is a good chance you can create a nicer new street for people to live in that will actually attract people to it (and then eventually reap the rewards as the property values increase).

It isn't without risk and it isn't so cheap but it has a much better chance than buying a single property in an area that already has severe problems with crime and bad tenants.

But if the taxes are too high then even this approach might not work (so sometimes what look like "bargains" are actually very far from it).

[Littleshop]

There is a way to make money out of extraordinarily cheap housing but actually it does require quite a bit of investment (have seen it done in Australia before).

Basically you buy *every* property in a small street then end the leases for all existing tenants (in a legal and reasonable way) and after they have left rebuild all the houses (and later be very fussy about the new tenants that you let move in).

If you can do that well (and the street is not surrounded by other bad streets) then there is a good chance you can create a nicer new street for people to live in that will actually attract people to it (and then eventually reap the rewards as the property values increase).

It isn't without risk and it isn't so cheap but it has a much better chance than buying a single property in an area that already has severe problems with crime and bad tenants.

But if the taxes are too high then even this approach might not work (so sometimes what look like "bargains" are actually very far from it).

This could work in Detroit if the property taxes were not inflated.  You could buy up neighboring bad blocks and knock em down for open space (and crime reduction) as well if you we're properly taxed for the actual value of the land.

If the area turned around you could build new houses on the empty lots.

[Chef Ramsay]

There is a way to make money out of extraordinarily cheap housing but actually it does require quite a bit of investment (have seen it done in Australia before).

Basically you buy *every* property in a small street then end the leases for all existing tenants (in a legal and reasonable way) and after they have left rebuild all the houses (and later be very fussy about the new tenants that you let move in).

If you can do that well (and the street is not surrounded by other bad streets) then there is a good chance you can create a nicer new street for people to live in that will actually attract people to it (and then eventually reap the rewards as the property values increase).

It isn't without risk and it isn't so cheap but it has a much better chance than buying a single property in an area that already has severe problems with crime and bad tenants.

But if the taxes are too high then even this approach might not work (so sometimes what look like "bargains" are actually very far from it).

This could work in Detroit if the property taxes were not inflated.  You could buy up neighboring bad blocks and knock em down for open space (and crime reduction) as well if you we're properly taxed for the actual value of the land.

If the area turned around you could build new houses on the empty lots.

Either that or just demolish a block or two and farm it next spring and that would generate a lot of cash money at farmer's markets while also help the community, which is what this city really needs. I live 30 mins west outside Detroit in a semi-rural area and the farm a few miles south of me has an open stand which is busy all day long. They easily make a couple hundred per day minimum so multiply that by product and the few months when ripe produce is available. Just an idea as I know that there is some urban farming going on down there. Or you could run a co-op where certain people put in the work as far as farming and then they get a cut of the yields and the rest is sold.

[Littleshop]

There is a way to make money out of extraordinarily cheap housing but actually it does require quite a bit of investment (have seen it done in Australia before).

Basically you buy *every* property in a small street then end the leases for all existing tenants (in a legal and reasonable way) and after they have left rebuild all the houses (and later be very fussy about the new tenants that you let move in).

If you can do that well (and the street is not surrounded by other bad streets) then there is a good chance you can create a nicer new street for people to live in that will actually attract people to it (and then eventually reap the rewards as the property values increase).

It isn't without risk and it isn't so cheap but it has a much better chance than buying a single property in an area that already has severe problems with crime and bad tenants.

But if the taxes are too high then even this approach might not work (so sometimes what look like "bargains" are actually very far from it).

This could work in Detroit if the property taxes were not inflated.  You could buy up neighboring bad blocks and knock em down for open space (and crime reduction) as well if you we're properly taxed for the actual value of the land.

If the area turned around you could build new houses on the empty lots.

Either that or just demolish a block or two and farm it next spring and that would generate a lot of cash money at farmer's markets while also help the community, which is what this city really needs. I live 30 mins west outside Detroit in a semi-rural area and the farm a few miles south of me has an open stand which is busy all day long. They easily make a couple hundred per day minimum so multiply that by product and the few months when ripe produce is available. Just an idea as I know that there is some urban farming going on down there. Or you could run a co-op where certain people put in the work as far as farming and then they get a cut of the yields and the rest is sold.

That is a good idea if there really is that much money in farming.  It is great for the city as it keeps money in that would be leaving otherwise.  The question is how would the city treat the property tax.  In Maryland you get a huge DROP in the property tax if farming is actually going on and it is ZONE-ABLE as farmland.  The property tax is less then 1/5 the normal rate.

[AKCoins]

Before you get all excited about the prospect of investing in Detroit, read this:

http://www.zerohedge.com/news/2013-07-21/25-facts-about-fall-detroit-will-leave-you-shaking-your-head


A few excerpts:

7.) At this point, there are approximately 78,000 abandoned homes in the city.

11.) If you can believe it, 60 percent of all children in the city of Detroit are living in poverty.

6.) There are lots of houses available for sale in Detroit right now for $500 or less.

23.) The murder rate in Detroit is 11 times higher than it is in New York City.

8.) About one-third of Detroit's 140 square miles is either vacant or derelict.


You can live here:

http://piperbayard.files.wordpress.com/2011/05/detroit-ghetto.jpg

And maybe the kids can go to school here:

http://sometimesinteresting.files.wordpress.com/2011/07/ds-2.jpg


Have fun out there.

[acoindr]

For those talking about repurposing large parts of the city for farming etc., you're right there is something to that. People should check out some guys actually doing it:

http://theurbanfarmingguys.com/about (with video)

We are the seed that died and went into the ground.  We have purposefully relocated our homes into one of the most blighted and dangerous zipcodes in the U.S. 64127, Lykins Neighborhood, Kansas City to put down our stake for the youth and the poor and for the next generation. What is going to happen to us … who knows? We are a band of pioneers.  We don’t claim this is good idea…. it is our lives.  It runs in our blood… to rebuild the ancient walls and cultivate the life of the inner-city, here in the land where the Police helicopter is the favorite bird, and neighborhood meetings hold stories of wild drama, where dropping crime stats are our touchdown cheer.

IMO these kinds of small start over communities are ideal places to integrate Bitcoin and bootstrap strong local economies.

[Damnsammit]

I'm trying to convince my wife to move to Detroit.

Got a lot of family there and would definitely welcome the cold climate... my mining rig would love to have a home in a basement.

[tmbp]

Lol you fools! I can't count how many times people have ripped off other people on selling property in Detroit, don't think I have heard of a single investor making profit.

[vokain]

Lol you fools! I can't count how many times people have ripped off other people on selling property in Detroit, don't think I have heard of a single investor making profit.

we need capitulation first before the buying's ripe!

[SaltySpitoon]

I'm not sure knocking down old shoddy buildings for farmland is a very good idea. What do you think the chances are that the old buildings you are demolishing were painted with lead paint? Even if you disposed of the house materials in the proper way (hazmat precautions required, very very expensive) the ground around where the houses were demolished would be unusable due to the contact it had with the house in standing condition.

I think it would be incredibly neat to have a Bitcoin crowd funding project buy up an area, but I think we may have better luck in another area that is insanely cheap. I have often though of buying a lot of land out in a very rural area, and then creating a large business there. Jobs would attract people to move there, and essentially grow the area into a town. Detroit may still be feasible, but perhaps with a different plan than funding by farming.

[bbit]

I'm not sure knocking down old shoddy buildings for farmland is a very good idea. What do you think the chances are that the old buildings you are demolishing were painted with lead paint? Even if you disposed of the house materials in the proper way (hazmat precautions required, very very expensive) the ground around where the houses were demolished would be unusable due to the contact it had with the house in standing condition.

I think it would be incredibly neat to have a Bitcoin crowd funding project buy up an area, but I think we may have better luck in another area that is insanely cheap. I have often though of buying a lot of land out in a very rural area, and then creating a large business there. Jobs would attract people to move there, and essentially grow the area into a town. Detroit may still be feasible, but perhaps with a different plan than funding by farming.

The reason I had Detroit in mind is the transportation and infrastructer is already there. Mainly, we snatch up some land/property and convert into a bitcoin shanty town to start and spreading out as we go. At least that is my thinking. 

I have a feeling this might be our only chance.

[vokain]

I'm not sure knocking down old shoddy buildings for farmland is a very good idea. What do you think the chances are that the old buildings you are demolishing were painted with lead paint? Even if you disposed of the house materials in the proper way (hazmat precautions required, very very expensive) the ground around where the houses were demolished would be unusable due to the contact it had with the house in standing condition.

I think it would be incredibly neat to have a Bitcoin crowd funding project buy up an area, but I think we may have better luck in another area that is insanely cheap. I have often though of buying a lot of land out in a very rural area, and then creating a large business there. Jobs would attract people to move there, and essentially grow the area into a town. Detroit may still be feasible, but perhaps with a different plan than funding by farming.

The reason I had Detroit in mind is the transportation and infrastructer is already there. Mainly, we snatch up some land/property and convert into a bitcoin shanty town to start and spreading out as we go. At least that is my thinking. 

I have a feeling this might be our only chance.

property taxes

[bbit]

I'm not sure knocking down old shoddy buildings for farmland is a very good idea. What do you think the chances are that the old buildings you are demolishing were painted with lead paint? Even if you disposed of the house materials in the proper way (hazmat precautions required, very very expensive) the ground around where the houses were demolished would be unusable due to the contact it had with the house in standing condition.

I think it would be incredibly neat to have a Bitcoin crowd funding project buy up an area, but I think we may have better luck in another area that is insanely cheap. I have often though of buying a lot of land out in a very rural area, and then creating a large business there. Jobs would attract people to move there, and essentially grow the area into a town. Detroit may still be feasible, but perhaps with a different plan than funding by farming.

The reason I had Detroit in mind is the transportation and infrastructer is already there. Mainly, we snatch up some land/property and convert into a bitcoin shanty town to start and spreading out as we go. At least that is my thinking. 

I have a feeling this might be our only chance.

property taxes

they can be included I mean $5,000 + property taxes isn't going to break the bank.

[SaltySpitoon]

The reason I had Detroit in mind is the transportation and infrastructer is already there. Mainly, we snatch up some land/property and convert into a bitcoin shanty town to start and spreading out as we go. At least that is my thinking.  

I have a feeling this might be our only chance.

The infrastructure is very worn, but true that could be fixed more easily than building it all from scratch. It would be neat, but there are a few things that could break the project. First, we would need to create jobs so people could work and afford to live there. We would also need to repair the houses to liveable conditions. So while it may only cost $500 to buy a house, it would still cost many thousands to repair them. Then we would have to deal with crime. Those in areas that weren't improving would be targeting the area that is. I have a feeling the few police officers left in Detroit would be hanging around our section, because we would be the only ones paying taxes, but security would still be an issue. I suppose its doable, but we have to first figure out how to recoup our costs so we can continue expanding.

As for property taxes, I'm sure we could just talk to the mayor and perhaps find some business loophole that would lower the taxes for our project while we were getting everything set up. I would think they would be more interested in a reduced tax rate, rather than none at all.


edit* Also, did a bit of looking into it, rather than aiming at the $500 houses, I'd say aiming at the $10,000-$20,000 houses is a better plan. There are actually quite a few of them that don't look like they are in ghettos. Lets get this one.

http://www.trulia.com/property/3086549069-18620-Muirland-St-Detroit-MI-48221

[vokain]

I'm not sure knocking down old shoddy buildings for farmland is a very good idea. What do you think the chances are that the old buildings you are demolishing were painted with lead paint? Even if you disposed of the house materials in the proper way (hazmat precautions required, very very expensive) the ground around where the houses were demolished would be unusable due to the contact it had with the house in standing condition.

I think it would be incredibly neat to have a Bitcoin crowd funding project buy up an area, but I think we may have better luck in another area that is insanely cheap. I have often though of buying a lot of land out in a very rural area, and then creating a large business there. Jobs would attract people to move there, and essentially grow the area into a town. Detroit may still be feasible, but perhaps with a different plan than funding by farming.

The reason I had Detroit in mind is the transportation and infrastructer is already there. Mainly, we snatch up some land/property and convert into a bitcoin shanty town to start and spreading out as we go. At least that is my thinking. 

I have a feeling this might be our only chance.

property taxes

they can be included I mean $5,000 + property taxes isn't going to break the bank.

they better pay me 5000 in taxes to live in detroit....