Oh, this crazy business of ours! And, oh, the things that are happening out there! Sometimes it's all just so hard to believe. But believe this: there are actually places in this country where you can buy a house for under $3000. Sure, we've all heard our grandfolk say things like: "When I was a kid, a house woulda cost..." but this is real, and today.
There are 18 listings in Flint, Michigan for under $3000, 22 in Indianapolis, 46 in Cleveland, and 709 in Detroit. Most of these are homes repossessed by lenders who now need to offload inventory. In fact, the $500, $1000, or $3000 that a buyer spends on the home will likely go straight to the broker for commission. Sometimes the lenders even have to throw in some extra money just to make it worth the realtor's efforts. It is still worth it for the lenders to do so in lieu of being responsible for repairs, management, and maintenance on said properties.
The houses are mostly fixer-uppers, some of which appear to be a little more on the fixer side than the upper. In some cases the wiring, plumbing, and heating systems must be replaced, walls and ceilings re-surfaced, fixtures exchanged, and new counters and cabinets installed. Few even come with appliances. Depending on the local laws, buyers are often required to rehabilitate these homes to meet the code before a certificate of occupancy will be issued. But even with such conditions, they are still incredible bargains.
Most of these homes can be renovated relatively economically and there is government help available for such repairs. HUD, for example, has a special program just for these purchases. Additionally, there may be grant money from the Neighborhood Stabilization Program signed last July. This type of home purchase may require a buyer to throw all caution to the wind, for the homes are generally located in not-the-best-of-neighborhoods, often surrounded by deteriorating or vacant neighboring homes. But eventually these neighborhoods will turn around, lending a return on a brave investment. In the meantime, as a rental property, this rehabbed home could provide a family the chance to improve their lifestyle in the neighborhood they are accustomed to, with the benefit of a great person such as YOU for a landlord. It is also a time of opportunity for lower income people to begin building investments, even if they can only make improvements in small stages.