The issues with the detroit metro area - and the opportunities as well - are complex.

The area is resilient, though, and it weathered a much more violent economic storm back in the 70’s and 80’s to come storming back in the 90’s and have the highest growth rate and lowest unemployment in the nation. This is, unfortunately, qualitative not quantitative analysis.

But suffice it to say that the discussion here is all about when, and not if, this area is coming back.

Me? I’m bullish. I have a waiting list as long as my arm of people that want to rent homes from me, and there’s a ton of supply available at dirt cheap prices. And at these prices I’m still covered if rents tank 20%, although I doubt that they will because at present they’re rising.

As always keep up the great work on the blog.

My track record the last 5 years has been to take CA investors out of CA in large part because of price, but just as importantly because of the quality to which you refer. Price is pretty much an empty suit without that quality.

I’m friends now with somebody you probably know, Tom Vanderwell, a very solid mortgage guy in Grand Rapids. I’m hopin’ to visit there some day soon.

I’ve always loved the price/rent ratio in your state, but can’t find data to support current and/or positive employment data. I’m always open to be shown what I’ve been missin’. That’s how I lifted my Texas embargo in the first place.

Thanks again, Dennis.

My apologies for the harsh response. Lani is absolutely correct.

So let me try and dig myself out . . . .

I wanted to offer a different perspective since I have first-hand experience with this “capital flight” topic, because part of my business here in Michigan (called ForeclosureConcierge.com) actually involves working with out of state investors as a consultant to help them find properties to either flip or buy and hold.

A large majority of the inquiries come from Southern California, and I have to say that in some cases I have had to “educate” some of these investors, because it seems that, after having seen pictures of burned-out houses in downtown Detroit (which isn’t much different from South Central LA), they think the whole metropolitan area is like that and begin treating locals here in a very condescending manner. You can imagine how that goes over here, and I have spent many minutes on the phone trying to smooth ruffled feathers.

So again, having lived in both places I wanted to make the point that it’s important for out-of-state investors to understand and appreciate the fact that some people, like me, choose NOT to live in California, and are very comfortable and prosperous in the areas that we’ve chosen, and that we enjoy living here.

That being said, bring your money!

I just bought a 3 bedroom brick ranch with one and a half baths, full finished basement, all appliances and a two car garage for $69,000 – and it’s rented for $1000 per month. And there’s another one just like it down the street that I know they’ll take $70k for.

You know what, Dennis? I bet he’d bring investment dollars to your side of town too regardless of the strength or weakness of a dollar (or of the analogies he chooses to write with).

It’s the price AND the quality that should motivate CA income property owners to Get Outa Dodge.

Thanks so much for your kind correction. Regular readers have already learned to assume a kind hearted intent on my part, so don’t assume any mean spirit.

Again, you and I are in agreement.

Typical California arrogance!!!

I’ve lived in Northern California (on the Peninsula) and Southern California (LA and Pasadena) and I can tell you first hand that the quality of homes here in the midwest far exceeds the quality of the homes that I experienced out there.

Plus we have brick exteriors and basements, (which don’t get included in the square footage).

So yes - your dollar goes a LOT further here, AND you get a better built home to boot.

I understand what you were trying to say, I just don’t appreciate the way that you said it!