Ok being from the Detroit area -
They have certain areas that are under revitalization. The areas these homes are in were once in cracked out, prostitute laden areas. (Cass Corridor Comes to mind) which is now GORGEOUS!!
They have since begun to be revamped, and are sold for literally pennies on the dollar along w/ abandoned buildings, and factories (which are then converted to lofts, condos and artists studios, offices etc some of which are NOW amazingly beautiful.)
The nice thing, is that the city absorbs most of the cost, and at least in one area that I know of, the purchaser has NO taxes for the next five years after purchase, as well as gets rehabilitation money to put towards the cost of rehabbing the building/dwelling!
Doing more research, that home (Like TONS in Detroit as well as Michigan) is in foreclosure, which brings another thought, often times, the city will sell properties for again pennies on the dollar just to get them rehabbed and/or demolished. (In certain instances and even in the suburbs (Warren area comes to memory) they (cities) will even help with the down payment) It's estimate from Zillow.com is 68kish and if you go to the city of Detroit's Equalization office website it has an SEV value of a little under 50k.
Depending on the property, this is how lots of people make money being a detroit landlord, buy something dirt cheap and then rehab it and rent/lease out to Section 8 tenants. HUD will do and/or absorb most of the cost of the work, and they (landlord/investor) is guaranteed a check every month via section 8.
Zoom info can be found here -
http://www.zillow.com/search/RealEstateSearch.htm?addrstrthood=6646+SEMINOLE&citystatezip=DETROIT%2CMI#src=url
Information on it being foreclosed upon can be found here -
http://www.streamfx.com/CW/12-5-2007/REO-Michigan7.html Actually at that link you will see LOTS of homes in the city of detroit and their foreclosed upon price, the house was originally listed for almost 7k, then dropped, if you follow the links at zillow, you'll see the cost of the house is basically what property taxes are for the year, with it being foreclosed upon, and being in a not so good area, although the city is trying to revamp, and alot of the neighborhoods are becoming "associations" so they can do this amongst themselves. (If you go into the link below and scroll to the east, you'll see brand new (as in revamped) homes where some are worth almost a couple hundred thousand....
Picture of the property (aerial view)
http://www.zillow.com/HomeDetails.htm?zprop=62324593
Bad area does not equal dangerous, I actually feel that the worst parts of the city of Detroit are safer than most parts of the burbs...In those parts of Detroit, it's usually an ongoing situation that creates violence (notice I said usually and most parts not ALL) and being just a passer through, or even if you are going into the area (some of the best bars are in these locations because they're out of the way, and you can go w/o being hassled, bothered etc, because it's ALL regulars) as long as your minding your own, trouble usually stays away....But Detroit is funny in that sense, you'll have a beautiful block, then a really "ghetto" run down block, pass a couple houses, and then go back to brand new looking homes, lofts and condos.
Don't forget the "mansion" districts, Edison, Indian Village,Lafayette Park, The River District (riverfront condos, lofts, and the like), East English Village, Palmer Park etc.
Hope that helps give some insight!
