Suggestions for Property in Area of Gentrification

2 Replies

I am not too sure what category to place this so my apologies if in wrong section. During my cancer battle I have met many warriors and their caregivers and for some, medical costs have taken high tolls om them in various ways. I had to cease working myself and started a new business and then about 2 years ago I would start teaching caregivers who had to leave their jobs, ways to make money from home so they could make an income while caring for their loved one. Long story short, I lost one of my warrior friends seven months ago and last week I received a call from her husband saying he had a gift for me. They own three properties in Houstons' Third Ward and he wanted to give me and my husband the smallest property. We have done due diligence and all is ok. Property currently has a renter in it and we have toured inside and interior is in good condition as well. Owner always heard me saying I would like property there and says for my kindness the home is mine. Unfortunately, taxes have risen extremely high making it difficult for him to keep the home. Current taxes are okay for me to handle for now but it is in a very very hot market area now so I am sure taxes will go up even more. So my dilemma is making best decision with this home. Homes nearby and being built nearby are in $500 to million dollar range and I am somewhat in a moral inner battle. 1. Do I keep home as is where it is and make slight improvements to match with new homes in the area and keep tenant in place? Tenants have been there 5 years and I have all payment history and never a late payment. 2. Do I tear down and do a rebuild and sell? 3. Do I hold until a Developer comes and makes an offer to buy and if price is right sell then and let someone else have the headache of rebuilding? 4. Rebuild for affordable and nice housing? 5. Do I take advantage of the area's growth and since also can be used commercially perhaps rebuild a place of business such as a bar or restaurant? I have no knowledge in either areas but do have vast business knowledge and perhaps can lease commercial building out or get guided to do The home is zoned for both commercial and residential use and in past was a duplex before being converted to SFR. I was wondering if a nice duplex would be an option. So many have been pushed from their homes in these areas and some are now retirees having to leave their homes because same situation...taxes so my heart is wanting to find a way to help someone remain in the area they have always called "home". I can not save the block so to say but if I can help one family and they have affordable rent then that is idea for me. Just not sure if the best idea. Would like to know how some of you would handle a property given you in such an area or am I being foolish and should just sell high and go get some properties elsewhere with the funds of the sale?
@Sarah S. - If the property is making a decent cash flow per month, I would not sell it. Now, if a buyer just happens to come along and makes an offer that is remarkable, then I would entertain it.

Too complicated personal decision. Congrats to a kind heart person.

Write down each choice and assign order of importance and cash flow and mostly your own time.

Once you write it down analyze with your trust ones. It will be more clearer.