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I guess my worst fear is another stupid or shady landlord buys it for a low price killing me from being able to sell for 5-10 years and I have to deal with renters who let the lawn grow 2 feet high,and when they do mow they have no respect for our property lines, have 5 cars and leave trash all over the place again.
You can form an LLC to do this. Just speak with an attorney to draft the agreement. Likely if you're using a lender they will still require some personal collateral if you default and LTV tends to be lower.
I guess my worst fear is another stupid or shady landlord buys it for a low price killing me from being able to sell for 5-10 years and I have to deal with renters who let the lawn grow 2 feet high,and when they do mow they have no respect for our property lines, have 5 cars and leave trash all over the place again.
Just a bit worn out of the whole thing.
How exactly would someone buying one house for a low price prevent you from selling for 5-10 years? I think you are way overthinking this one.
You're right, in 5-10 years it would not be a huge issue. If something came up and I had to sell next year it might. Hopefully I am over reacting. It just sucks to see idiots being stupid causing problems for those who did not use a 100% mortgage, who bought a house they could easily afford, etc, then they get to skip out on some of their debt while causing more issues for their neighboring homeowners.
Agreed, the potential loss in value, after you have accounted for other homes sold in the area, has a much smaller downside potential than the potential downsides to a group buy. Don't put your finances at the mercy of several other unknown quantities.
The only way I would do it is if it could be gotten pretty cheaply, it gets put back into top shape and quickly resold (hopefully at a decent price) to someone that would live there as a homeowner. Probably would still lose money on though, but if you don't want a rental on your block, you will dislike being the landlord even more.
Actually had a similar situation on my block. Neighbors looked into buying. Thankfully a flipper picked it up at a price higher then I thought it would go for, fixed it up and resold it. The new homeowner is great, and house is fine and no longer a problem. I would wait it out.
A group buy could work if only one person had the authority to make
changes, repairs, maintenance and the others just cut checks for their share.
Anyone getting uppity after the fact that they were not consulted for some
$1,000 plumbing repair or something, could opt out by forfeiting their share.
I'm not saying such a partnership is likely, but it might be the only one that would work.
All the "silent partners" would just have a passive investment and be
preserving their neighborhood. The person doing the managing would get a fee.
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