DETROIT, Michigan (CNN) -- Jeremy Burgess likes the location and layout of the three-bedroom, one-and-a-half bath home in the Grandmont neighborhood of Detroit, Michigan. This home in Detroit, Michigan, was bought for $12,000 and sold the next week for a $5,000 profit. The home is large for the area, around 1,600 square feet. By far the most attractive feature for Burgess is the price. While he says it may appraise at around $110,000, he bought it on March 11 for a mere $12,000. "I'm selling it next week to an out-of-state investor for a little over $17,000," he says. His company, Urban Detroit Wholesalers, buys, renovates, then flips or rents homes in Detroit, something that may seem foolhardy to some observers in one of the most economically depressed cities in the nation.
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Jeremy Burgess and Jared Pomranky run Urban Detroit Wholesalers
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Some homes in Detroit, Michigan, sell for as little as $1, many for $50
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The company works with a nonprofit and flips cheaply priced homes
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Recently released convicts working for the charity help renovate the properties
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Pomranky says contrary to @placeholder's national image, there are still clean, well-kept, middle-class areas people want to live in.
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"Many investors in @placeholder and especially Detroit, they are a little too close to see the opportunity," he says.
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The more I tried to prove him wrong about @placeholder, the more I proved him right."
Jared Pomranky
That same year he met @placeholder and formed Urban Detroit Wholesalers.
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Urban Detroit Wholesalers
That same year he met Pomranky and formed @placeholder.
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They say they knew for their continued success, @placeholder had to prosper, too.