Wednesday, April 02, 2008


Cheap houses are great, but they need area jobs to go with them.

"This is a millionaire's market," said Jeremy Burgess, a 28-year-old investor from Washington state who has been living in Detroit for the past year. "I feel like I'm driving through the city and stopping to shovel diamonds in the back of my truck."

His wife, Jeanna Kiehle, and partner Jared Pomranky formed Urban Detroit Wholesalers to scour the city for houses they can fix and rent. The idea is to generate cash flow until the market improves, and they then can sell the houses. They own 38 houses now and close on 15 more before the end of the month.


Burgess said he can pick up an $85,000 house in Detroit for $20,000 to $30,000 these days. Listings on Fannie Mae's Web site show many Detroit foreclosures for less than $25,000.