Homes for less than $10,000 on sale in Detroit

Hmmm. Sounds like there's an opportunity and lots of people are taking advantage of this. It reports one person from California has purchased nearly 200 homes.

Click here for the article on CNNMoney.com.

Remember that Real Estate is not a liquid investment. This means, it takes time before you can access or convert it into something that is usable (think sell or borrow against). Compare against a highly liquid asset such as a bank account where you can deposit money into an account and withdraw the same money five (5) minutes later. After you make this purchase, how long will it take for you to "get out" of this investment?

Risk/Reward: Need to weigh the risk of needing liquidity and management issues (dealing with tenants, property management companies, trips to location of property, insurance, tax, liability or legal issues, etc) vs. the reward of potential monthly cash flows from rents and appreciation of the underlying asset.