The new Detroit Vacant home rules.

 The Administrators in the City of Detroit have done it again.  I have to hand it to them.  They definitely know how to make it hard for Detroit landlords and Detroit investment property owners.  Making money as a Detroit landlord is hard enough now without adding this to it.  That is why so many local landlords are interested in buying Metro Detroit real estate instead of the city of Detroit foreclosures.

Here are the latest new rules about vacant homes:

If a Detroit City inspector finds a vacant home or vacant Detroit investment property, they will post an Emergency Notice on the property, giving the property owner 24-hours to secure the property in accordance with new City of Detroit standards for vacant property. Here is what has to happen.  You have to board all of the  basement windows, any windows lower than five feet, front and back doors, and all porch windows. If the landlord or homeowner does not secure within 24-hours, the City of Detroit inspector intends to board at the cost of the property owner, landlord, or bank owner. Here are the costs that the property owner, landlord, or bank will be charged:

• $500 Administration Fee
• $300 - $400 Board-Up Costs
• $300 in fines (issuance of ticket)

If you haven't been to the City of Detroit lately this is a gold mine.  There are currently 1333 Detroit foreclosures down from over 2000 foreclosures a few months ago.  If they get the minimum amount of money for all of these Detroit foreclosed homesthat could mean $1,466,300 in their coffers (1333 homes times $1100).  Not a bad way of making a budget shortfall.  If only Kwame Kilpatrick was still in office he could probably get another SUV for his wife with the kind of money the City of Detroit will be making.

Here are some of the worst Detroit foreclosures.  This is not a uncommon sight in Detroit.

Look at the following four pictures these are 4 Detroit foreclosures or 4 abandoned or burnt out Detroit homes right in a row.  You can see the next house in the picture before it so you can't say I just made this up.

It is not uncommon to see multiple Detroit foreclosures on the same block.  Here are some bad ones.

I do applaud the City of Detroit for trying to rectify their budget deficit but it will create hardships for many Detroit landlords and Detroit investors.  They are the ones that will be paying this over and over.  I wish I was a fly on a wall to hear a Detroit property manager calling the owner of the property in England to tell them they have a $1000 bill for board up of their property that they couldn't rent.  Especially if they only paid $2000 for it.

There could be potentially thousands of Detroit homes that will be boarded up.  Will they board up the burnt out ones?  I am sure there are some that will be uncollectable for the board up fees.  But the banks or the new buyers are going to be shelling out some money here real soon.

Buying Detroit investment properties and Detroit foreclosures can be profitable but there are many pitfalls.  I myself would only recommend it to experienced hands on investors.  

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Russ Ravary your Metro Detroit real estate agent