Hi everyone,

This is my first post on here so here goes:
Last year I was naive enough to purchase a 3 bed property in Detroit, US.which was touted by the
selling agents here in UK as refurbished and with existing tenants and having a management
firm collecting rent and seeing to any maintenance, etc.so effectively a hands off investment. I knew this was a bit of a risky first time
venture due to the location primarily, but somehow got blinded by the overall returns promised. I managed to receive rent for about 6 months. The tenants at that time wrecked and destroyed the whole house causing damage estimated to be nearly as much as what I paid for the property. Obviously the property management firm in Detroit deny any liability or responsibility. Consequently the property has been vacant since the start of this year and now boarded up.
I did not have any insurance on the property for the good that would have been as it would have been very restrictive and not covered that type of risk. I realize that it would be almost futile to try
and get whoever is responsible to pay damages in another country.
So now, because I cannot afford to have the property repaired, I just want to cut my losses and be
rid of it as I still have to pay their property tax and other maintenance fees as well as the
US tax returns. Unfortunately it would be very hard to sell the property in its present condition. The
only solution I have been offered so far is to transfer my name to a limited liability company, the benefits of which are not quite clear to me. I do not have any liabilities
on the property (no mortgage or bills.etc) I am now at a loss on what to do next .

Can anyone shed any light on this? Any form of advice which might lead to a satisfactory solution, is greatly appreciated.
Sorry it is so long winded.

Thank you
BM

Wow, what a mess! I appreciate it may be difficult but is there any way the selling agents here may be at fault in so much that it would be normal practice here to obtain references on prospective tenants - was this done? Failing any form of redress then your options appear limited. If you are any good at diy, how about a holiday in the US and fix it up as best you can? I imagine that trying to arrange someone to do it for you from such a distance would indeed cost a small fortune. What is the market like there, would the property be saleable if fixed up? If you are correct and the cost of fixing it is the same as it's value then maybe talk to a local agent there re offering it for sale for just enough to cover their fees - must be someone prepared to buy it for a couple of thousand dollars??

I'm not sure selling it for even a couple of thousand dollars.

According to the New York Times a couple of years ago, "With more than 20 percent of the lots in the 139-square-mile city vacant, the mayor is in the midst of a program to demolish 10,000 empty residential buildings. But for many, the city already seems hollowed out," The population of Detroit fell by a quarter in the first decade of this century, that's faster than New Orleans post-Katrina.

Sorry to be so negative, but your best bet is to get it off your personal liabilities as soon as possible, so you stop being liable for the property taxes. An expensive mistake that you need to put down to experience.

Hi Everyone,

Many thanks for all your comments and suggestions. I think I will probably try and go with the LLC transfer and see what happens. It has certainly been a costly eye opener and a lesson well
learned.

Thank you

Is it not the case, from what I gather from the TV, that US owners can just walk away from the property. Unlike us. No LLC required, try checking out blogs online.
There is, again I gather, no follow-up by the authorities, ie Detroit City, in fact it may not be in be Detroit proper, but over the city line in the suburbs.
Which is why so many houses have been abandoned. And America has abandoned Detroit. I would say, try not to incur any more expenses.
Sorry about this bit. A friend of mine, who lives here, had to give away a house in Florida, his deceased fathers, because it would not sell and he was paying the property charges.

Sorry for your position. KJ.