Go to: http://www.bestplaces.net/city/michigan/detroit
1. On the Detroit overview, look at the -23.8% loss in population. The population of Detroit is pouring south into Ohio.
2. Under the Economy link on the left column, the unemployment rate of Detriot is 14.5%. The US average is 6.3%.
3. Under the Housing link on the left column, the vacancy rate in Detroit is 28%. A vacancy rate of 8% is one month empty/year. A vacancy rate of 28% is over 3 months vacant.

These are just a few of the reasons why investing in Detroit, or any city in the rust belt surrounding the Great Lakes does not make financial sense.
Happy Investing.

Turn Key

I hate the phrase turn key. When I hear the phrase, it is like listening to the screeching of fingernails on a chalkboard. I believe that there has probably been as many investors hurt by in investing in “turn key” properties than were hurt investing with Bernie Madoff.
What does the phrase “turn key” mean? It doesn’t mean anything. I stick a key in a lock and turn the knob that lets me into my house. This is where any similarities with anything to do with real estate end.
There is nothing turn key about real estate. In order for real estate investing to be profitable, the property has to be managed by a competent manager. Competent property management is the last necessary ingredient in the real estate success recipe that includes real estate price analysis, economic analysis of the market, rental market analysis, and property inspection.
Turn key is a phrase bandied about by shady marketers use to lull want-to-be real estate investors who don’t want to take the time to become educated in that particular market, into believing that investing in real estate is easy. It is not. Someone has to be doing the day-to-day “heavy lifting” of the property. Rent collection, evictions, move-in/move-out inspections, cleaning, repairs and maintenance, etc. are a short list of the responsibilities of a property manager.
The phrase can be attached to anything building in any condition, in any circumstance. Here’s an example. Next to a main artery into one of the cities in which I invest, I have watched a vacant building for several years which used to house a restaurant for probably 20 years. The restaurant fell victim to changing demographics, changes in available local cuisine, and urban blight. The building sat empty for a few years. One clever real estate agent placed a sign on the building reading, “Turn key” restaurant space.” During the subsequent five years the building has housed three different restaurants and is now empty again.
Obviously there is nothing “turn key” about that particular location.
Remember, when you hear someone touting “turn key,” think to yourself, “This guy is a tur-key.
Good Luck and Profitable Investing
Ryan