Re: Potential Real estate deal - comments appreciated
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Looks like you will be a slum lord. Always good deals in slum areas.....
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haha, I already AM a slum lord. I've always focused on low income housing because, as you mentioned, there are always good deals in low income areas. I makes for more tenant headaches, but I screen tenants extensively and only chose the best of the bad options. I also limit my tenancy issues by accepting Section 8, and that creates a lever with which to control tenancy much better. I rent to low income people, but I'm proud to offer the BEST low income housing in the area. My places are kept emmaculate, and this property will be no exception. My places also attract the best tenants in the market segment I'm after. this property wil just further build my slum empire. [img]/images/graemlins/smile.gif[/img]
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What are the neighborhood problems? And shootings? Violence? Crime?
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Well, there aren't really NEIGHBORHOOD problems. This property isn't really in a neighborhood at all. The property is on a 45 mph split highway with commerical buildings on both sides of the road. This property is the only residential anything for some distance. So the property is pretty isolated. Crime and such are low in the general area. The only real problem is that lots of the commerical buildings that are there are boarded up (maybe 15-20% of them), and the presence of the sex shops. The other businesses that are right there are mostly used car lots, RV sales lots, and that kind of thing.
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Considering the fact that he has been burned TWICE before by lease option buyers, it may or may not be a hard sell.
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yes definitely. This seller doesn't seem too bright though and I think he could be convinced. I'm pretty experienced as a landlord to low income tenants, and I've done projects like this one before. I've got a long-term employee that has agreed to live in the MHP and start renovations immediately. His property is in capable hands, and I think I can convince him.
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The 2nd option is the owner finance option which I like the most since it would give me absolute control over the fate of this property and what happens down the line.I normally don't like to have any strings attached to the previous property owner.
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yeah, agree. The only reason why I prefer the l/o deal is that it limits my risk so much more. This property seems like an enourmous risk to me, and I want to limit my downside as much as possible. The l/o deal gives me the ability to get away from the property with minimum fuss for both me and the seller.
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