The problem is the Assessment doesn't automatically change when the house is sold. The assessment on this house claims to be $37000. That means the city values the house at $75000. With Detroit's millage rate being 67, that puts the taxes at about $2500 a year if homesteaded. You would have to challenge the tax assessment at both the city and state level to get the tax assessment in line with the sale price. If you bought the house for $10000 you would be paying out 25% of it's value every year in taxes. Detroit's absurdly high tax rates and pre market crash hyper inflated assessments are neighborhood killers.