Super cashflow pos in the USA?

[ArJay]

A mate showed me an interesting artice in the paper on the weekend about a bloke who's cashed in his super to buy property outright in Detroit.
Anyone read it....?

http://www.news.com.au/adelaidenow/story/0,,25184134-5015839,00.html

The article in the paper was saying how he's bought 6 of them now, all rented and returning about $1000 a month. Now that's some serious yeild!!!

R

 

[arms]

A mate showed me an interesting artice in the paper on the weekend about a bloke who's cashed in his super to buy property outright in Detroit.
Anyone read it....?

http://www.news.com.au/adelaidenow/story/0,,25184134-5015839,00.html

The article in the paper was saying how he's bought 6 of them now, all rented and returning about $1000 a month. Now that's some serious yeild!!!

R

in another article a local from detroit advised that the houses were probably in a gang neighbourhood and he would probably be very lucky to continue with his rent collections

 

[Perp]

Discussed here, Arjay.

 

[Adelaide Gal]

Personally I think that the article must contain an error in regards to the rental yield. Rentals in Detroit (as most other states in the US) are monthly. I would anticipate a monthly rental there of approximately $700; definitely not weekly. Throw into the equation repairs, property management, the exchange rate, insurance and taxes and the returns will be a lot less than the article leads you to believe.