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I would avoid them and let them sit. But then again I'm not a flipper. I wouldn't take the risk and cut corners to maybe turn a profit. Though many do it the right way and do profit which is the silver lining here. It's the city's problem. There are entire neighborhoods like this in inner cities. The areas are dangerous but the prices are reasonable. In my hometown outside Philly you could buy a 100,000 old row home, which is in poor condition, but still cheap enough to buy and renovate.
I'm not asking what you'd do if you were a flipper. I'm asking you, who wants to do away with flips, would propose to have done with dilipated homes if flipping were eliminated? Just leave them sitting there to rot?
Something like 35% of the homes under $400K where I am looking have been purchased with cash to be used as rentals, Air BnBs, or flips. When we say investors, I think of those who see a house as nothing more than a unit for financial gain. To those of us are looking for a home, it is very unsettling to have to compete with that element and deal with the greedy nature of the current state of real estate.
Something like 35% of the homes under $400K where I am looking have been purchased with cash to be used as rentals, Air BnBs, or flips. When we say investors, I think of those who see a house as nothing more than a unit for financial gain. To those of us are looking for a home, it is very unsettling to have to compete with that element and deal with the greedy nature of the current state of real estate.
Same in my town of 12,000 residents. The AirBnB cancer first spotted beachfront has metastasized and is spreading through once quite neighborhoods off the beach. Families looking to buy here for the small beach town life are competing with investors who are buying looking for juiced-up ROI.
Same in my town of 12,000 residents. The AirBnB cancer first spotted beachfront has metastasized and is spreading through once quite neighborhoods off the beach. Families looking to buy here for the small beach town life are competing with investors who are buying looking for juiced-up ROI.
This is something HOAs in communities of predominately owner-occupants have had some success in negating.
Once non-occupant-owners acquire a majority, it is out of control. Just like we see in many non-warrantable condominium complexes.
Location: Danbury CT covering all of Fairfield County
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Investors in my market are generally sticking toward the lower end condos and palces might be been OK for first time home buyers. Minimal flips as foreclosures & really discounted properties are low. Air b& b isn't much of a thing in my area but a couple of towns have regulations.
I'm not asking what you'd do if you were a flipper. I'm asking you, who wants to do away with flips, would propose to have done with dilipated homes if flipping were eliminated? Just leave them sitting there to rot?
Not only flipping should be ILEGAL but REAL ESTATE AGENTS like yourself should be eliminated as well. NAR (national association of realtors) with their lobby is nothing more than domestic terrorist organization and should be dismantled and eliminated. It's absolutely criminal what has been done to our housing market. And why should homeowners and buyers keep paying percentage to useless real estate agents in this age of internet listings and DocuSign? Title Company takes care of most everything and real estate agents or vampires are useless, total waste or joke that needs to be eliminated from the buying and selling process.
The good thing is the FED is done suppressing interest rates and protecting housing and stocks. Real Estate Speculators need to be CRUSHED and DESTROYED so hard that they never again think about speculating with housing. Strong US Dollar and higher interest rates will END FLIPPING and will force speculators to run for exits. No one will care speculating with housing when interest rates are moving higher and higher and when Banks are offering safe investment returns just by keeping your money in the Bank.
Something like 35% of the homes under $400K where I am looking have been purchased with cash to be used as rentals, Air BnBs, or flips. When we say investors, I think of those who see a house as nothing more than a unit for financial gain. To those of us are looking for a home, it is very unsettling to have to compete with that element and deal with the greedy nature of the current state of real estate.
The FED has been protecting and propping up housing market all those years but now the FED is out of business suppressing interest rates and those fools and housing speculators are on their own now. Housing prices have a long way down....50%, 70% in some areas.
Don't fight the FED and those housing speculators will now learn it the hard way just like those fools back in 2007/2008.
The PARTY is ENDING and deflation in housing and rents is about to begin.
The FED has been protecting and propping up housing market all those years but now the FED is out of business suppressing interest rates and those fools and housing speculators are on their own now. Housing prices have a long way down....50%, 70% in some areas.
Don't fight the FED and those housing speculators will now learn it the hard way just like those fools back in 2007/2008.
The PARTY is ENDING and deflation in housing and rents is about to begin.
Good Luck!
Wow this thread is getting entertaining! We've morphed from Flippers are an issue to they are scum and RE Agents can help to RE Agents are Vampires and Domestic terrorists. This would all make a very interesting horror movie.
I see a lot of posts in this thread, that do not know what they are talking about, and many more, that know nothing about the community needs, and that they have to share the market for homes with the entire real estate market.
1: Homes have to meet minimum standards to be financed. It can cost thousands of dollars to bring them up to lendable standards. The sellers do not have the time and money to do it, and the buyers do not have the money or knowledge to do it. The flippers, have the money and can bring the homes up to lendable standards. Flippers have always been with us, and are needed in some situations.
2: Rental owners are much needed. Lets use some examples of who the large percentage of renters are. A young family just out of college are hired for a good job as a computer programmer. They do not have the funds or credit history to buy a home. They need to be able to rent a home, to be able to take the job. They need to rent a home for 2 to 5 years, to reach the point of having the funds, etc. to be able to buy a home. The employer needs to be able to hire them to fill their needs. There are many people and reasons, that they are needing homes for rentals.
Rental homes are scarce, and more need to be made available be filling this housing need. The IRS knows this, and tax laws make it to the advantage of the landlords to make it possible for the landlords to be encouraged to have homes for rent to fill the needs of the market. Without rental homes, there would be a big problem in the area. These rental homes, are a vital need for the city, to keep the economy operating smoothly. Some landlords may own dozens of homes, and may not always be local people.
Local economies need rental homes, and buyers buying for personal use, have to realize they are competing with these investors to buy homes.
Investors buy homes for the Total Return On Invested Dollars. This is the sum of the Cash Flow Return, the Tax Benefit Return, the Appreciation Return, and the Loan Amortization Return. This is then computed based on the investors actual dollar investment in the property. As the Wall Street Journal back end of 1970's said this is the only way to evaluate investing in real estate. The return can be as high as in the 40% range of the invested dollars. The IRS made it possible to make this kind of return, to encourage investors to fill the vital needs for real estate rentals. It is one of the safest investments investors can make.
Some of you will think this is terrible having to compete with investors for single family homes, but without this incentive the investors would get out of the real estate market, and the country would have a serious housing problem, which would drive the price of homes far above the current prices.
Rental homes are needed, but not necessarily rental houses.
Young couples/families as described, even those with a small child or two, can probably save much more money by living in apartments than they can by renting a house. I don't know anyone of my generation of friends who rented houses, since we all lived in apartments as renters until we could afford to buy that single family house and decided that we were willing to make the tradeoffs, such as living further away from city amenities and job location.
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