They don’t actually cost 500 dollars.

It’s only because they are in shambles that they’ve been given such titles. Truth be told, you’d have to invest some money into it, perhaps right around the 10,000 dollar range just for repairs, in order to make it viable as living space. The worst case scenario is you spending way more for that, including utilities, furniture, water bills and many other factors that go into making it livable. It may sound like a hefty investment, but trust me, it'll be worth it.

Buying a house auctioned by the DBLA gives you 6 months time to get a code and have it occupied.

Of course, for homes which have some historical value, 9 months is the maximum time allowed.  If you don’t take care of the regulatory requirements, you’ll end up losing the home, thus throwing away all your initial expenses for it.  Hence, it is necessary to have a  budget prepared beforehand for the repairs to be done.

The houses being auctioned have historical significance within the city of Detroit.

You’ve heard stories about how Detroit, Michigan is the perfect place for some real estate ventures, whether commercial or residential.  Yet, if you’re thinking about moving in, you’d be surprised at the really good deals you’ve got waiting for you.  Nicole Curtis, host of Rehab Addict on HGTV, and Detroit Land Bank Authority Director of Public Affairs, Craig Fable, share a few tidbits of valuable information on purchasing houses that are available for auction.

Time is needed.  Time actually means money too.

You’ll have to be patient with the rehabilitation of an auctioned home.  You can either do the fixing yourself, or hire services.  So long as you have the skill set required, as well as the imagination, you can ensure that the house will end up looking just how you envisioned it.  If you’re not sure of your home renovation skills, there are professionals who can do it for you.  Just know that nothing is instantaneous.

Don’t get into the hype just yet --- INVEST.

You won’t be able to move in right away, but you can invest in a 500 dollar home.  Watch its market value rise up, and soon enough you’ll have property which can cost up to 30,000 dollars.  That’s a great deal of value, which makes for a great option for commercial purposes or for use as a rental space somewhere down the line.

Absentee investors or landlords are off-limits.

Remote investors are highly frowned upon and discouraged by the DBLA.  Properties cannot be purchased in bulk too.  The investors should actually see to the renovation of these homes first and making them entirely livable before they are allowed to purchase another piece of property.  Occupancy is also a must before more purchases can be made.