What do yo think this means?
So I have been living on a street in my hometown for a while and I always drove by this house that was tucked back in the woods and overgrowth everywhere to the point that you can barely see through the trees and shrubs to see the house. Now that I have been starting to get into the investor mindset, I figured I would look on the town assessor website to see who owned it and what it sold for and anything I could find out about the property. I was surprised on my findings......
Apparently a development firm who has built quite a few large rental properties around my area and the surrounding towns owns it as of 2003. It was sold in 2000 for $150,000 and was bought buy them in 2003 for $525,000. So I started to think why they would hold onto the property that long without building...maybe permit issues, zoning..etc. Which lead me to my next discovery.
There is a small mobile home-looking property down the street that had absolutely no business being where it was. I recently noticed that someone had put caution tape around the garage and it started to look condemned. So now I am thinking they bought that property as well to make a large development. I look at the assessor website again for that property. Turns out that a DIFFERENT real estate developer bought that property last year.
So of course I knew my investigations were not finished. So what did I do next? I google the LLC name and what do I find? A letter from MassHousing to the LLC on January 2014 stating that they are approved to build a 13 unit home ownership development. (I love google).
Beyond the fact that I feel like a real Sherlock Holmes, what do you think this means for my street? It's a really residential street. If developments are planning on going up, does this increase home value to the adjacent properties or reduce the value? How would this affect the rent market in this area?
I am curious to see other peoples insight on what this would mean to the market.