Should I Buy A SFR With Racist Neighbor?

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Should I Buy A SFR With Racist Neighbor?

Justin Smith
Wholesaler · Anderson, SC · Member since 2015 · 34 posts · 23 votes

I can potentially work out a no money down deal on a house that I can get for 40k-45k (Appraised value) that will rent for 600-650.  There is a high voltage electric tower directly in the back yard and the neighbor across the street has about 10 rebel flags in his front yard and hanging from his gutters.

Personally, these things don't bother me too much, but I can see how others might be offended.  

Would you buy this house to rent it out?

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Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
11y

It's quite well known, especially with the actions a few months ago, that the Confederate flag is considered a racist symbol. 

The neighbor having 10 of them hanging in front of his house shows his racism. 

Whether you want to take it on as a rental property , I think, can depend on what the neighborhood is like. Is it predominantly white? Then maybe mostly white people will inquire. If it's mixed or attracts a lot of black people, then I would pass it by, because you'd likely have a difficult time to find tenants, who would feel comfortable there. 

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  • Perry Ivy
    Investor · Jonesboro, AR · Member since 2015 · 241 posts · 132 votes
    11y
    I'm confused by your racist comment? Owning and being proud of your heritage is now considered racist? Perhaps the old proud neighbor won't want a new racist neighbor.
    1Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    11y

    It's quite well known, especially with the actions a few months ago, that the Confederate flag is considered a racist symbol. 

    The neighbor having 10 of them hanging in front of his house shows his racism. 

    Whether you want to take it on as a rental property , I think, can depend on what the neighborhood is like. Is it predominantly white? Then maybe mostly white people will inquire. If it's mixed or attracts a lot of black people, then I would pass it by, because you'd likely have a difficult time to find tenants, who would feel comfortable there. 

    10Reply
  • Justin Smith
    OP
    Wholesaler · Anderson, SC · Member since 2015 · 34 posts · 23 votes
    11y
    Originally posted by @Perry Ivy:

    I'm confused by your racist comment? Owning and being proud of your heritage is now considered racist? Perhaps the old proud neighbor won't want a new racist neighbor.

    Personally, I have no opinion.  However, I can see how some might find it racist.  I'm not buying it because of what I think.  I'm buying it while anticipating what others might think.  

    0Reply
  • Jacqueline Carrington
    Investor · Corona, CA · Member since 2014 · 746 posts · 372 votes
    11y

    I don't think the Confederate flag is racist but could see how others may take it that way.

    3Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    11y

    Here is some history on the flag.

    http://www.huffingtonpost.com/2015/06/22/confederate-flag-racist_n_7639788.html

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    11y

    A single house renting for $600 is going to have all kinds of weird neighbors.

    I assume you can find sex offenders, thieves and drug dealers living within a quarter mile radius of this home.

    Only you can decide if that's something you want to deal with. Honestly the guy being a racist would probably be the thing I paid the least attention to in this situation.

    3Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    11y
    Originally posted by @James Wise:

    A single house renting for $600 is going to have all kinds of weird neighbors.

    I assume you can find sex offenders, thieves and drug dealers living within a quarter mile radius of this home.

    Only you can decide if that's something you want to deal with. Honestly the guy being a racist would probably be the thing I paid the least attention to in this situation.

    But sex offenders, thieves and drug dealers don't tend to advertise that in front of their house. Someone with 10 Confederate flags is looking for confrontation and will likely not keep his mouth shut, should he get a neighbor not to his liking.

    2Reply
  • Doug N.
    Lynnwood, WA · Member since 2015 · 221 posts · 157 votes
    11y

    I would buy it purely for the value in writing a compelling short story - it has everything: confederate geniuses, EMF cancer clusters, meth labs and perhaps a local police force that likes to shoot first. 

    What's not to like?

    (Here I usually insert a 'best of luck' closing, but I suspect you already have plenty).

    7Reply
  • Perry Ivy
    Investor · Jonesboro, AR · Member since 2015 · 241 posts · 132 votes
    11y
    Originally posted by @Justin Smith:
    Originally posted by @Perry Ivy:

    I'm confused by your racist comment? Owning and being proud of your heritage is now considered racist? Perhaps the old proud neighbor won't want a new racist neighbor.

    Personally, I have no opinion.  However, I can see how some might find it racist.  I'm not buying it because of what I think.  I'm buying it while anticipating what others might think.  

    @justin smith you say you have no opinion and yet your tile proclaims he's racist. Perhaps you should word it different. Have you talked to the person to determine his attitude? I'm in a multiracial marriage, I don't just assume people are racist because they like a flag. What if their gay and have ten rainbow flags? Or Mexican and have ten Mexican flags? To some the flag is about a heritage, to others racism and you proclaimed the neighbors are racist. I personally don't care, it just seems you labeled them based on your own predjucies.  Good luck in whatever you decide :) 

    3Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    11y
    Originally posted by @Michaela G.:
    Originally posted by @James Wise:

    A single house renting for $600 is going to have all kinds of weird neighbors.

    I assume you can find sex offenders, thieves and drug dealers living within a quarter mile radius of this home.

    Only you can decide if that's something you want to deal with. Honestly the guy being a racist would probably be the thing I paid the least attention to in this situation.

    But sex offenders, thieves and drug dealers don't tend to advertise that in front of their house. Someone with 10 Confederate flags is looking for confrontation and will likely not keep his mouth shut, should he get a neighbor not to his liking.

    I suppose I agree with that. My main point is that if a racist neighbor is the reason someone decides to buy or not to buy a single home with a market rent of $600 they should not be investing in homes that have market rents of $600.

    0Reply
  • Justin Smith
    OP
    Wholesaler · Anderson, SC · Member since 2015 · 34 posts · 23 votes
    11y

    @Perry Ivy

    Is this an argument about whether or not I think he's racist, or a discussion on if he is racist, how that will affect the marketability of the home as a rental property?

    I don't care what you think about how I labeled some guy neither of us know.  I care about what potential renters might think of this person and how it will affect the marketability of the property if black people decide they don't want to live next to the guy.  

    I don't care if the dude is a cross burning KKK nazi or a kill whitey screaming black panther.  I don't care if confederate flags are about heritage or if they're about hate.  I just want to know if the house is marketable.

    Do you have an actual opinion on this topic, or nah?

    6Reply
  • Justin Smith
    OP
    Wholesaler · Anderson, SC · Member since 2015 · 34 posts · 23 votes
    11y
    Originally posted by @James Wise:
    Originally posted by @Michaela G.:
    Originally posted by @James Wise:

    A single house renting for $600 is going to have all kinds of weird neighbors.

    I assume you can find sex offenders, thieves and drug dealers living within a quarter mile radius of this home.

    Only you can decide if that's something you want to deal with. Honestly the guy being a racist would probably be the thing I paid the least attention to in this situation.

    But sex offenders, thieves and drug dealers don't tend to advertise that in front of their house. Someone with 10 Confederate flags is looking for confrontation and will likely not keep his mouth shut, should he get a neighbor not to his liking.

    I suppose I agree with that. My main point is that if a racist neighbor is the reason someone decides to buy or not to buy a single home with a market rent of $600 they should not be investing in homes that have market rents of $600.

     The home seems profitable.  Its in rent ready condition.  What else is their to be concerned of, other than marketability?

    0Reply
  • Doug N.
    Lynnwood, WA · Member since 2015 · 221 posts · 157 votes
    11y

    @Perry Ivy Thanks for the master class in how to kill a thread! 

    It's actually a two-for-one special: how to kill your reputation as well. 

    You may want to attend another class: how to delete your posts. It's easy. 

    3Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    11y
    Originally posted by @Justin Smith:

     The home seems profitable.  Its in rent ready condition.  What else is their to be concerned of, other than marketability?

    You want to know what kind of people live in the neighborhood, what's the racial make-up?. And maybe knock on the doors of some other neighbors, asking about the guy with the flags, whether he stays to himself or is more outspoken

    2Reply
  • Justin Smith
    OP
    Wholesaler · Anderson, SC · Member since 2015 · 34 posts · 23 votes
    11y

    @Michaela G.

    Thank you.

    0Reply
  • Greg Carrier
    Investor · Granger, IN · Member since 2015 · 195 posts · 129 votes
    11y

    I have an opinion.  There are tons of houses out there and we pass or buy them based not only on numbers but gut feel as well.  If you are wondering about it.  I would pass on it.  That goes for all kinds of neighbors, like the ones who have a lot of trash around or always have 20 friends hanging out.  Or where the house is slightly different from the rest or sits on the lot a little differently  (tight corner lots for example.  I pass on them because some people would not be comfortable in the house and there are a lot of houses out there to pick from.

    Good luck!

    4Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    11y
    Originally posted by @Justin Smith:
    Originally posted by @James Wise:
    Originally posted by @Michaela G.:
    Originally posted by @James Wise:

    A single house renting for $600 is going to have all kinds of weird neighbors.

    I assume you can find sex offenders, thieves and drug dealers living within a quarter mile radius of this home.

    Only you can decide if that's something you want to deal with. Honestly the guy being a racist would probably be the thing I paid the least attention to in this situation.

    But sex offenders, thieves and drug dealers don't tend to advertise that in front of their house. Someone with 10 Confederate flags is looking for confrontation and will likely not keep his mouth shut, should he get a neighbor not to his liking.

    I suppose I agree with that. My main point is that if a racist neighbor is the reason someone decides to buy or not to buy a single home with a market rent of $600 they should not be investing in homes that have market rents of $600.

     The home seems profitable.  Its in rent ready condition.  What else is their to be concerned of, other than marketability?

    That is the thing. It is a $600 rental house. Today your concerned about a racist neighbor. Tomorrow it will be a new problem. The next day there is some other issue. I am not saying don't buy the property. I have $600 rentals myself. What I am saying is if this one particular issue may be a deal breaker for you then don't invest in these neighbors as there is always going to be something going on.

    2Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    11y

    @James Wise , you're in Cleveland - this property is in Anderson, SC. You can't judge a neighborhood or rental rate from long distance in another state, based on Cleveland criteria. Maybe $ 600 is the average rental rate there and it's on the low end in your area. You don't know that and can't judge .

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    11y
    Originally posted by @Michaela G.:

    @James Wise , you're in Cleveland - this property is in Anderson, SC. You can't judge a neighborhood or rental rate from long distance in another state, based on Cleveland criteria. Maybe $ 600 is the average rental rate there and it's on the low end in your area. You don't know that and can't judge .

    I disagree.

    If we were comparing say the LA rental market to the SC rental market I could see your point but at $600 I believe it has to be on the lower end. Rental prices can only go so low.

    0Reply
  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    11y

    For a rental home, the electrical towers in the back will be less of an issue, although it will probably still turn off some families. This would be a worse "feature" if selling the home.

    As far as the neighbor, well, it's tacky to have that many flags and sure, might turn off some people. But you need to look at the bigger picture. How is the overall neighborhood? And is this particular neighbor an actual problem or is he/she just over-reacting from the media saturation of this story?

    On another note, I don't think using Huffington Post as a source on the history of the flag is exactly a credible or unbias source.

    4Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    11y

    Wow, what a thread!

    I like the post that said "Based on gut feeling I would pass, there are lots of houses out there". I reject lots of stuff just based on my sense of how easy or hard it might be to rent out; while I can't control the neighbors, or the neighborhood, I try to have one of the only rentals on the block, because (not set in stone) homeowners do a better job of maintaining their properties. I'm down here in the South (actually, not too far from you, my grandparents lived in Anderson) and if that house was a homeowner house, I wouldn't like it, and if it was a rental I'd like it even less, since the landlord obviously doesn't mind that kind of stuff going on. My leases don't allow tenants to hang anything from the porches, windows, shed, whatever, so they'd take it down or they'd get the boot. When you couple in the high-voltage lines, you have to accept that the locale and the price is going to be bringing you people from that economic strata, and you will be more likely than not to get troubled tenants. 

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  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    11y

    According to rentometer.com , the median rental rate in Anderson, SC is $ 550 and the average rent is $ 605.

    Cleveland is a major city and Anderson, SC is much smaller

    1Reply
  • Wilson Churchill
    Madison Heights, MI · Member since 2014 · 472 posts · 132 votes
    11y
    Originally posted by @Michaela G.:
    Originally posted by @James Wise:

    A single house renting for $600 is going to have all kinds of weird neighbors.

    I assume you can find sex offenders, thieves and drug dealers living within a quarter mile radius of this home.

    Only you can decide if that's something you want to deal with. Honestly the guy being a racist would probably be the thing I paid the least attention to in this situation.

    But sex offenders, thieves and drug dealers don't tend to advertise that in front of their house. Someone with 10 Confederate flags is looking for confrontation and will likely not keep his mouth shut, should he get a neighbor not to his liking.

     It's probably an act of defiance on his part, given the propaganda put out by the "liberal" media and the Communist BLM movement. If he's always had them, then he probably has ancestors that fought on the Confederate side of the Civil War.

    2Reply
  • Justin Smith
    OP
    Wholesaler · Anderson, SC · Member since 2015 · 34 posts · 23 votes
    11y

    @James Wise

    I see your point.

    1Reply
  • Justin Smith
    OP
    Wholesaler · Anderson, SC · Member since 2015 · 34 posts · 23 votes
    11y

    This is the house :D

    1Reply
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