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Old 12-04-2016, 02:54 PM
 
Location: Lakewood OH
21,697 posts, read 23,672,920 times
Reputation: 35449

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Quote:
Originally Posted by Ultrarunner View Post
He has done amazing... and amazing is not a word I use.

Grew up in Pleasanton CA and dropped out of school to work Salmon in Alaska... did that for a couple of years and had his fill... moved to Portland and was looking for something cheap... bought an old warehouse and the rest is History...

Wells Fargo offered him a job... which is something no one that knew him would ever believed and he made the transition... real estate and managing the bank's Portland interests have made him well off.

Still remember his mother was quite upset about him sinking his life savings into a decrepit old warehouse... he even lived there for a time and was able to pay the bills renting storage space.
Your friend sounds really smart. Not many people would take a chance on that kind of property with the foresight to see how it would turn out. I sometimes look at rundown properties in Cleveland and wonder if they have that kind of potential. Certainly that has been true already of downtown and some other areas. Smart investors have bought old dilapidated warehouses and office buildings and turned them into really nice rentals and condos.

In just the two years I've lived here there has been an amazing transformation of that area. There are still areas I would invest in if I had the funds.

No doubt, those who invested in my former shabby Portland neighborhood in SE Portland back in th 80's and 90's knew what they were doing.
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Old 12-05-2016, 12:48 PM
 
26,591 posts, read 52,313,328 times
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I'm in Oakland and there has been a huge demand for old warehouse space for live work and artists etc...

They were most affordable... I knew some that were paying $550 a month which is dirt cheap.

The problem is many are converted or utilized without oversight... even proudly doing so as a mark of pride...

The huge Oakland warehouse fire with 33 dead is 6 blocks from where I lived... the entire area was being transformed from empty buildings to a vibrant community without regard for city code...

Those with city code conversions had no problem leasing space but were beyond being affordable...

The tragedy has already reverberated... the Oakland "Vibe" has been hit hard... a fear of thousands losing housing is very much the topic if a code crackdown starts...

I see it from the other side... and have to enforce code which is sometimes hard for people to understand why they can't have flammable holiday decorations around the office and we can't accept a fresh Christmas Tree unless it has fire retardant chemical applied....

When of my friends always says given the choice he will take luck over smarts...
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Old 12-05-2016, 02:22 PM
 
14,260 posts, read 24,000,210 times
Reputation: 20081
Quote:
Originally Posted by Minervah View Post
Your friend sounds really smart. Not many people would take a chance on that kind of property with the foresight to see how it would turn out. I sometimes look at rundown properties in Cleveland and wonder if they have that kind of potential. Certainly that has been true already of downtown and some other areas. Smart investors have bought old dilapidated warehouses and office buildings and turned them into really nice rentals and condos.

In just the two years I've lived here there has been an amazing transformation of that area. There are still areas I would invest in if I had the funds.

No doubt, those who invested in my former shabby Portland neighborhood in SE Portland back in th 80's and 90's knew what they were doing.

If you were serious about buying a cheap home in Cleveland, it is generally better to do it in the middle of a recession. I would NOT buy some of the HUD houses in some of the edgy neighborhoods. Rather, I would be looking at a single family dwelling in the Westpark area of Cleveland or in the central portion of Lakewood (think W130th - W180th St.). Head east of there and you have to worry about crime; head east of there and the prices escalate.

Do remember that you ONLY hear about the person who bought a $25k shell, invested $100k and can sell it for $300k. You rarely hear about the person who bought the place for $50k, spent $100k on the rehab and is stuck with a great property in a bad neighborhood that will be "up and coming" when your infant grandchildren are your age.
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Old 12-05-2016, 02:29 PM
 
26,591 posts, read 52,313,328 times
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Quote:
Originally Posted by jlawrence01 View Post

Do remember that you ONLY hear about the person who bought a $25k shell, invested $100k and can sell it for $300k. You rarely hear about the person who bought the place for $50k, spent $100k on the rehab and is stuck with a great property in a bad neighborhood that will be "up and coming" when your infant grandchildren are your age.
This is exactly conventional wisdom except for those counting out Oakland California the horizon often mention was a lifetime... no one doubted it would come back... location on the SF Bay... but just about all said not in their lifetime...

Turns out it took about 15 years or for those with perfect timing... 2009 to 2015
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Old 12-05-2016, 09:26 PM
 
Location: Tucson/Nogales
17,407 posts, read 21,249,654 times
Reputation: 24241
Quote:
Originally Posted by Ultrarunner View Post

Might not make for a good move for someone retired... but buying at the bottom of an up and coming market is always a smart move.
In May of 1993 I bought into an inner city neighborhood, just north of downtown Phoenix, as I couldn't afford the prices of a home in the pricier historic districts to the east, and 6 months after buying my 1939 home for $50k, that area, Fairview, was declared a historic district, and the prices took off, made a nice profit!

Here, in Las Vegas, the Milennials have discovered Huntridge, old 40's, 50's, 60's homes and that area is experiencing the higher increases in real estate values.

If I were to buy I'd buy as close to the downtown area as possible, as the back to the city movement seem to know no bounds.

In 1988, I bought a condo/loft in a marginal area of downtown Minneapolis, half the district was rehabbed, the other half not, the recession struck in the early 80's and many of those urban pioneers panicked and fled, leaving lots of foreclosed units. I bought in real cheap at $22k in 1988, and 5 years later the prices hadn't even budged. Moving to Phoenix then I let mine go into foreclosure, and? If I had hung onto that unit for 10 more years, I could have sold it for $150k and that neighborhood has seen a complete transformation with a couple new high rises as well.

IMO, you just can't go wrong with inner city properties today.

Back to history. The Bronx in NYC was a middle class Jewish suburb at one time, then all but destroyed, and even that area of NYC is being rehabbed, reborn.
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Old 12-05-2016, 09:52 PM
 
Location: Tucson/Nogales
17,407 posts, read 21,249,654 times
Reputation: 24241
Quote:
Originally Posted by foundapeanut View Post
Lived in KC for years.

The crime map - those are homes I would never consider or the neighborhoods. Those have been bad areas since the 70's. This is where a huge portion of regular crime happens. Down by the Nelson art gallery might not be as bad, but next to downtown. ugh. They'll probably level them for some new office building.

You need to take a trip to KC to see the reality what you are dreaming about on the internet.

Most are probably over run with mold, a huge issue in KC. Especially for homes that aren't taken care of. Our allergist called it the mold capital of the US.

Even a new house with a basement will have mold. Mold literally grows in the air at a humidity of 47%. Why we moved, allergic to it.

If it a big porch that attracts you, buy in good neighborhood and add one on to your house.

When I was painting my house to sell before moving out here, it was 124 degrees heat index. Oh and the bugs. ick.

You won't get bored with the weather, wait 24 hours and it'll change. Rain, sleet, hail, tornados, snow, humidity year round, ice storms, etc. Losing electricity for a week or more. The lines in the older sections of town are still above ground. Getting stuck in your home, cause of the snow or ice storm. Stay off the street warnings.
Thanks to someone who has lived there.

As for crime, with so many investor owned houses today, here in Las Vegas you see crime reports increasingly scattered all the over the Valley, even in Henderson/Summerlin. There's no way to stop it, an investor buying a home somewhere, even in a nice neighborhood, and with a poor choice of tenants, there goes the quality/safety of the neighborhood, even with an HOA. The units in my 433 unit townhouse complex are now 55% owned by investors, from? it was discovered: many from Hawaii!

With Tucson out of the picture, price wise, then where?????? I even checked El Paso, and no great bargains there, and you're facing those choking Texas real estate taxes.

And I've thought, if KC is crossed off the list, well! I'm in no great pain here in Las Vegas, far from it, and if all else, just scoot out of town more often, take advantage of those cheap SW airline fares to LA, San Diego, Baja! And, yes, even northern Baja has been on my radar screen!
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Old 12-06-2016, 04:47 AM
 
2,952 posts, read 1,640,257 times
Reputation: 5292
Quote:
Originally Posted by jrkliny View Post
Yes. I had an old Cape remodeled by the owner. It was one of the few houses in the neighborhood without a basement. The basement issue was massive. Basements had been built with cinder block walls that were being pushed inwards. Lots of houses were jacked up to totally rebuild the basements with poured concrete. Others had buttresses and other makeshift repairs.
I loved those homes! Wanted to buy one but in 1990 when I was looking but it was a very hot area at the time. One came on the market, was in an estate sale, not remodeled since it was built and had holes kicked in the walls. Had some code issues and was selling it as is. I remember the steps going upstairs were narrow from front to back, weird. Priced at $140,000. I'm sure it sold but as a single gal it wasn't for me. Too much cost to get it up to date and fix it's issues.

The basement you just described was mine. Steel beams and all. In the old Leawood area.

Told the inspector, I was a new home buyer and this had everything I wanted but that basement. Would he buy it? He said he'd buy it over one that hadn't had the basement redone. We were on the border of probably not having basements due to the amount of rain fall we got. Or at least that was his opinion. Never had an issue with it. When I sold it 8 years later (first day bidding war!) the basement wasn't even mentioned.
I had tastefully and fairly inexpensively remodeled it before I moved in so that helped I'm sure.
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Old 12-08-2016, 03:09 PM
 
625 posts, read 382,333 times
Reputation: 698
Quote:
Originally Posted by tijlover View Post
In May of 1993 I bought into an inner city neighborhood, just north of downtown Phoenix, as I couldn't afford the prices of a home in the pricier historic districts to the east, and 6 months after buying my 1939 home for $50k, that area, Fairview, was declared a historic district, and the prices took off, made a nice profit!

Here, in Las Vegas, the Milennials have discovered Huntridge, old 40's, 50's, 60's homes and that area is experiencing the higher increases in real estate values.

If I were to buy I'd buy as close to the downtown area as possible, as the back to the city movement seem to know no bounds.

In 1988, I bought a condo/loft in a marginal area of downtown Minneapolis, half the district was rehabbed, the other half not, the recession struck in the early 80's and many of those urban pioneers panicked and fled, leaving lots of foreclosed units. I bought in real cheap at $22k in 1988, and 5 years later the prices hadn't even budged. Moving to Phoenix then I let mine go into foreclosure, and? If I had hung onto that unit for 10 more years, I could have sold it for $150k and that neighborhood has seen a complete transformation with a couple new high rises as well.

IMO, you just can't go wrong with inner city properties today.

Back to history. The Bronx in NYC was a middle class Jewish suburb at one time, then all but destroyed, and even that area of NYC is being rehabbed, reborn.
the Bronx is the new Brooklyn and Queens is the new Bronx. in terms of development coming back.
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Old 12-08-2016, 03:46 PM
 
14,260 posts, read 24,000,210 times
Reputation: 20081
Quote:
Originally Posted by Ultrarunner View Post
This is exactly conventional wisdom except for those counting out Oakland California the horizon often mention was a lifetime... no one doubted it would come back... location on the SF Bay... but just about all said not in their lifetime...

Turns out it took about 15 years or for those with perfect timing... 2009 to 2015

The difference between the Bay Area and most other real estate markets is the availability of buildable land and the regulations on land use that are not present in most other markets.
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Old 12-08-2016, 10:02 PM
 
26,591 posts, read 52,313,328 times
Reputation: 20438
^^^ Yep... I saw affordable housing throughout much of Oakland with a better climate, same access to the SF Bay and better hub for transportation all going for a fraction of SF Prices.

True... Oakland has issues with crime and public schools... but, I have moved into high crime neighborhoods that are are no longer such.

Three things happen to the bad guys... they die or go to prison or find Jesus if they live long enough...

The location of Oakland is prime Real Estate with nowhere to go but up and is dependant on addressing crime as number one... at least this is what I saw when I started buying in the 80's...

Another thing about a city like Oakland is it really is a collection of neighborhoods because it varies this much... good neighbors are golden everywhere and I have been blessed with many.
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