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Old 01-13-2014, 04:29 PM
 
Location: The Upper 9th
41 posts, read 54,576 times
Reputation: 70

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There's an abandoned house directly across from mine that is falling apart. It looks so bad that I'm sure it will be a drawback when I go to try to sell my house in a year or two. I checked and it is blighted and owned by the city of New Orleans. The city has been auctioning it every few years, but even with a minimum bid of $600 for the house and the empty lot next door, there were no bidders. For that price I'd like to buy the house, tear it down and sell the lots. What I'm worried about is the possibility that this will turn into a bureaucratic problem in dealing with the city. Does anyone know how difficult the process of buying a blighted house is? Is it just like buying any other house, or will I end up snarled in red tape?
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Old 01-14-2014, 08:16 AM
 
880 posts, read 1,157,386 times
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Can't help you there, but I'd imagine that tearing it down and clearing the lot would cost more than $600 on top of everything else.
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Old 01-14-2014, 10:34 AM
 
Location: The Upper 9th
41 posts, read 54,576 times
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Well, I can do the teardown work and land clearing myself. It shouldn't cost much more than a few dumpster loads of garbage and maybe a backhoe rental. I've considered an accidental fire, but the neighboring house is just a little too close and I wouldn't want to damage that. I should be able to make a profit selling the land, even after the expenses of removing the house and clearing the land.
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Old 01-15-2014, 04:45 AM
 
Location: City of Central
1,837 posts, read 4,116,882 times
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Tearing down a house involves more than a few dumpster loads of trash . Try a few truckloads . And there is probably permitting and insurance involved . Do some homework first .
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Old 01-15-2014, 06:48 AM
 
Location: NY
206 posts, read 542,430 times
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Quote:
Originally Posted by mhounit View Post
Tearing down a house involves more than a few dumpster loads of trash . Try a few truckloads . And there is probably permitting and insurance involved . Do some homework first .
I have no idea what is involved in your area, so lets look at mine.

Many city, county, state inspectors involved. Possible even Federal.

Permit for the removal of any structures.

Lots of rules regarding fencing to contain dust and debris.

Permits for electrical, water and sewer removal and capoff.

You may not be allowed to do any of them and a licensed tradesman is required.

If on a primary road, traffic control may be necessary.

And of course, as already mentioned, is the removal of the materials.

Trucking, dumpster and landfill fees come to mind.

That's it for my part of NY.

I hear they're more laid back down south.
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Old 01-15-2014, 12:15 PM
 
13,714 posts, read 8,509,202 times
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Quote:
Originally Posted by Chip N Sawbones View Post
For that price I'd like to buy the house, tear it down and sell the lots.
I don't think you can do that. I think the city has a rule that if you buy a city-own blighted property you must rehab it within 365 (not sure about that number though) days. You can probably sell the vacant lot but I don't think you can sell the property until you finished rehabbing it within the allocated amount of time. Don't think you can just tear it down and call it a day. You should contact them and find out what the rules are.

.
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Old 01-15-2014, 06:26 PM
 
4,886 posts, read 6,859,117 times
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Also consider hazardous materials that may be in the house. If the house was built prior the 1960's there are likely materials that would be considered pollutants and would have special conditions in the removal. Even if there is only lead paint involved there are special conditions to consider in its removal. I would have an inspector look at it to be sure. Hazardous materials removal can be costly. Not following the rules for removal and getting caught will be even more costly.
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Old 01-17-2014, 08:30 PM
 
Location: Denver
15,813 posts, read 23,836,439 times
Reputation: 11800
Quote:
Originally Posted by hey teach View Post
Also consider hazardous materials that may be in the house. If the house was built prior the 1960's there are likely materials that would be considered pollutants and would have special conditions in the removal. Even if there is only lead paint involved there are special conditions to consider in its removal. I would have an inspector look at it to be sure. Hazardous materials removal can be costly. Not following the rules for removal and getting caught will be even more costly.
That's what I was thinking. These are likely Federal offenses as well.
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Old 01-18-2014, 10:57 AM
 
Location: New Orleans
151 posts, read 276,304 times
Reputation: 110
Honestly, you should contact the city and ask. If you own the house and the lots, there's no reason you can't clear one of the lots and then sell it. If you have the deed, it's yours. Provided you aren't hurting anything or building an eye sore, I doubt the city would care.
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Old 01-19-2014, 04:51 PM
 
13,714 posts, read 8,509,202 times
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See the description below. The new owner of the property has 365 days to make the blighted property nice again (unless you live adjacent to it then you can tear it down and make it your green space but you can't just sell it as an empty lot). You will most likely have to sign an agreement with city before they sell it to you. You may be able to transfer the agreement to the person who buys it from you but maybe not, that's why you need to contact the city and find out what the rules are. It's possible you're not allowed to sell it until you rehab the property; afterall, the point of selling a blighted house to you cheaply is because the city wants you to clean it up and improve on the neighborhood; not because you can make a profit by doing the bare minimum.


Quote:

Winning bidders will agree to rehab or complete construction on the property within 12 months (365 days) and keep it code compliant and free from blight. Bidders may also utilize the property for green space if they are a directly adjacent property owner.

Buy a Blighted House from NORA on November 2, 2013 | Preservation in the Present
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