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Detroit has been hit hard by the coronavirus pandemic, as cases in Michigan top 115,000.
But despite the city’s troubles, the local real estate market has been warm, according to Zillow.
Despite an average home value of only $42,486, prices in the Detroit market have gone up 4.9% over the last year, and Zillow predicts they will rise an additional 7.2% within the next 12 months.
That said, you can become a homeowner in the city for just a few thousand dollars — but it’ll take a lot of work.
The Detroit Land Bank Authority (DLBA), founded in 2008, set out on a mission to return run-down and vacant properties in the city to productive use. To do so, it sells thousands of publicly owned properties through programs such as Own It Now and Auction. The homes can be bought for as little as $1,000.
But claiming full ownership is not without work: The DLBA has a compliance program that requires purchasers to either renovate and occupy or demolish the house.
We caught up with Deandra Averhart, a native Detroiter, who purchased an abandoned home through the DLBA’s Own It Now program in June 2018. She paid just $2,690.50 for it and, in a year and five months of fixing it up, spent around $13,000 on renovations. One way she was able to keep the budget low was by decorating with furniture she bought at thrift stores or on Craigslist. Now that her work is done, Averhart confirmed to Business Insider that she’s still been living there through the pandemic.
In an interview with Business Insider, Deandra explained how she transformed the property and her biggest takeaways from the project.
If you have a renovation story you’d like to share, get in touch with this reporter at Lbrandt@businessinsider.com.
SEE ALSO: A Louisiana couple bought an 80-year-old general store for $55,000 and turned it into their dream home. Here’s how they did it — and what it looks like now.
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A brief history: Detroit, Michigan, was once home to a booming auto industry. However, in the 1950s, the city started declining and companies started moving out of the city. By the 1960s, people were leaving in droves.
In 2013, the city filed for Chapter 9 bankruptcy protection, the largest municipal bankruptcy in US history. Now, more than 5 years later, more and more programs are seeking to improve the city.
Wealthy entrepreneurs are investing in the city too, like Dan Gilbert, the billionaire founder of Quicken Loans. As Business Insider previously reported, after Gilbert moved his company to downtown Detroit in 2010, he started the real-estate firm Bedrock.
Not only is Quicken Loans one of Detroit’s largest employers and taxpayers, but as of 2018, Bedrock had invested or allocated $5.6 billion in roughly 100 properties in downtown Detroit and nearby neighborhoods.
The Detroit Land Bank Authority — the DLBA …read more
Source:: Business Insider