Detroit debuts the new house auction site.

[swingline]

I'm curious if anyone knows how difficult getting financing for a project like these would be? I am considering purchasing in the city and this is certainly a possibility if the right opportunity presents itself. However, I certainly don't have enough capital to purchase, then make all the fixes right away in 6 months without a loan. Would it be a lot tougher than getting a standard mortgage or a similar process?

Houses needing substantial renovation in EEV could probably qualify for a 203K loan which is underwritten based on value of the property once its renovated and is designed to be used to finance the renovations. Lots of paperwork though. There's no way to complete a 203K renovation in 6 months.

As for those $40K houses in EEV, you put $10K down, finance $30K at 6% for 15 years and you're saddled with a whopping $253 monthly loan payment. That's less than the monthly DTE gas bill for residents of Palmer Woods, Boston Edison, Indian Village, etc.

[brizee]

3 hours and change and it seems the first house is going for >30K.

[Danny]

YAY DUGGAN!

That's a mayor that takes community action. Auction off city owned property to middle class hopefuls. This plan should work.