In real estate, they say “location, location, location” when finding properties with the best market appreciation. Well, there couldn’t be a better example of this old adage than the dilapidated Detroit house that is now on the market for $5 Million. The price may be shocking, but you may fall out of your chair knowing the same house was bought for $25,000 back in 2002…
So what makes this beat-up house with a history of fire damage so valuable? You guessed it, its prime location near the up-and-coming downtown development “District Detroit”, lead by the late, billionaire investor, Mike Illitch.
The 4,700 square foot, pea-green house with a sagging roof isn’t the prettiest thing to look at, but the location of the property has real estate developers falling in love. Darren Johnson is the agent selling this property located on Cass Avenue in Midtown Detroit. According to Johnson, they are getting some offers, in which many plan to tear down the house and build a high-end restaurant or social club on the lot.
“The Pistons are coming downtown and that’s more days,” he said. “The arena’s going to be open for business and people are just going to be flowing in the area… I’m even thinking about moving down here myself.”
If this house does indeed sell for the asking price of $5 million, you are looking at a not-too-shabby return on investment of about 20,000 percent! Although this hefty real estate profit isn’t seen every day, it is a large-scale reflection of the incredible investment potential across Detroit and Southeastern Michigan, which keeps real estate investors worldwide flocking into the region to take advantage.
Story and Photo Credits: http://www.clickondetroit.com/news/dilapidated-house-in-midtown-detroit-being-sold-for-5-million