hostile rental owner environment

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

7y

I hope the lead paint restrictions do pass. The rate at which children in Cleveland are being diagnosed with lead poisoning is shocking. I can’t imagine how I would feel if it happened to the children of one of my tenants.

5 Reply

Jim R.

Rental Property Investor · MD · Member since 2015 · 24 posts · 8 votes

7y

Bob:

Couple of serious issues with this policy. If a renter moves before trash pick day, how does the full trash bin get to the curb? (first violation) Is the PM responsible for this?

Once the trash bin is at the curb and emptied (second violation), how does it get retrieved if the tenant has already moved out? Again, is the PM responsible for this?

Is the tenant and owner made aware of these issues in the lease and PM agreement?

Joel Fine

Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes

7y

Yikes. I have invested in several small distressed multi-family properties in the Cleveland area. I feel like I'm doing a positive community service by fixing these properties up and making them great places for tenants to live in. It sounds like these cities don't agree. It makes me wonder if I should find a more landlord-friendly place to invest.

2 Reply

Igor T.

Cleveland, OH · Member since 2018 · 61 posts · 21 votes

7y

Originally posted by @Joel Fine:

Yikes. I have invested in several small distressed multi-family properties in the Cleveland area. I feel like I'm doing a positive community service by fixing these properties up and making them great places for tenants to live in. It sounds like these cities don't agree. It makes me wonder if I should find a more landlord-friendly place to invest.

You are not doing enough. Buy the whole street, make it safe and clean, put your politicians. People will appreciate.

Bob CollettPro Member

OP

Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes

7y

@Marc Winter in addition, we do have some communities charging an extra $100 or $150 in addition to the normal rental registration fee, if the owner lives outside of the county.

@Gwen Fyfe i appreciate you concern. However, so many of these houses are supplied by lead supply lines in street and infrastructure. This would be on the city water department, yet they focus on rental property owners. Why should this burden to deal with lead fall upon the current inventor who may have only owned the house for a year? I am curious to know if you own any older homes in Cleveland. Would you personally be ok with a $20,000 lead mediation bill on a property worth $40,000?

2 Reply

Bob CollettPro Member

OP

Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes

7y

@Joel Fine as you know, all city of Cleveland rental properties are slated to be inspected annually and subject to violations. They hired 33 new inspectors last year for this purpise.

Bob CollettPro Member

OP

Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes

7y

@Jim R. Not only that... but a housing code violation is a criminal case. So as property manager, I can be found guilty of a criminal offense in Garfield Heights if the tenant does not bring in trash bin

Lee Bell

Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes

7y

[quote]but a housing code violation is a criminal case. So as property manager, I can be found guilty of a criminal offense in Garfield Heights if the tenant does not bring in trash bin.[/quote]

That is just nuts. And they say we are crazy in CA.

What a horrible crime to leave the trash cans out too long. LOL.

4 Reply

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

7y

Bob, I have a few thoughts on this.

First, yes, I own an older home in Cleveland - my own. Do you think I’m going to stand by and let my kids get lead poisoning? If I’m watching out for my own kids, why is it okay to endanger other people’s children?

The investor who has a $20k repair to make on a $40k home they bought a year ago is responsible for it because they bought a home for someone else to live in. No one NEEDS to buy rental real estate. This type of investment is a luxury, and it’s a luxury with obvious moral implications. If you buy a rental, you have a responsibility to make the tenants safe. You wouldn’t rent the home out with a gas leak, no smoke detectors, or a wiring issue. The only reason landlords are trying to convince themselves that lead is different is that the bill is higher. Which is reprehensible.

In Cleveland, my understanding (and yes, I’ve been keeping up with the reports on this issue) is that the vast majority of the problem is from lead paint in older homes and lead in the soil of former commercial properties. Not so much the city water infrastructure. If the city tries to fine you for something that’s in their control not yours, take them to court, great. If the city starts fining you for a safety issue they were ignoring before... well, the only reason it’s taken this long is city officials trying to please landlords, and frankly I don’t want this issue to be ignored in my name.

7 Reply

Joel Fine

Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes

7y

Originally posted by @Bob Collett:

@Joel Fine as you know, all city of Cleveland rental properties are slated to be inspected annually and subject to violations. They hired 33 new inspectors last year for this purpise.

I don't mind an inspection. In fact if done right, an inspection is of value to me - it helps me maintain my investment. But if it's a tactic to victimize me as a property owner, that's not ok.

Bob CollettPro Member

OP

Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes

7y

@Gwen Fyfe Thank you for your thoughts. I agree that all safety issues should be repaired including lead.

However, Why is it appropriate for the city to only require rental owners to test for a lead safe environment and not owner occupants. Did the city require you to hire a certified lead inspector to test the home you live in?

Characterizing a rental property as a “luxury” property is a stretch. The idea exists out there that all or most rental owners are wealthy and thus should bear the cost of 80 years of neglect by everyone else.

I certainly agree that all homes should be lead-safe for children and everyone else. I will not take on management of a property where the owner does not care about safety issues. Indeed, I recently resigned as property manager at a property where the owner refused to mitigate the lead safe issues. But I understand, the reason he is walking away, is because he simply does not have the resources to bare this expense.

The fact is that most investors of 1-4 unit rental property in Cleveland are regular working people, who scrape together savings to make an investment in housing. They hope to earn an 8% to 15% RII. They are not making a luxury purchase... that would be the second home on the beach or in the ski resort.

In any case, we are off track here because the point of my article is that investing in real estate is not a casual investment, and that investors need to understand that many cities are looking for investors to cure the failures of the city.

Investors need to be aware of the point of sale inspections, pending lead safe requirements, rental registration requirements, vacancy permit requirements, local property tax policies, enforcement of waste requirements, permitting policies, contractor registration requirements, etc. before they buy. I know from experience that these issues are often an afterthought.

I know that most investors are unaware of these nuances, because among the properties that I manage; the owners are stunned to learn of them.

The city of Bedford where you live was forced to cancel mandating point of sale inspections because the court deemed them to be unlawful search and unjust enrichment to collect inspection fees in this situation.

As I said in the original post some cities penalize the investor if he lives out of town by making her pay an additional fee.

In some cities, investors are charged in Grimaldi court if a tenant fails to bring in an empty trash bin with 12 hours.

State law requires all home owners to declare any known lead paint issues. But now Cleveland is proposes to require investors alone to prove that the home they bought is lead safe.

Gwen, I once had the city of Euclid tell me that the property could not be rented until all cracks in the driveway (minor cracks) were sealed. It was February. Thus the house was to sit empty until Spring.Result: cracks filled in February, knowing that the material would not hold due to cold weather installation.

I had the Maple Heights inspector tell me that the owner was required to resurface an asphalt driveway. When I pointed out that the driveway next store was in much worse condition, he stated that the home next store is owner occupied.

A city official in Garfield Height told me just yesterday, that if residents had it their way; all rental property would be banned! The fact is that some municipalities do not want investors. It’s as if they would prefer boarded up houses.

Again, my post was not about lead. We all agree that no child should become ill because of lead paint. Yet, simply painting a house resolves the problem of lead paint danger... but when the city gets involved, only a certified registered lead specialist is permitted to paint the house... doubling the cost. An owner occupant can get assistance, but not a rental owner.

@Joel Fine I agree that an inspection is of value. Should a city (Cleveland) begin mandatory inspections of all rental properties, when there was no such requirement when the investor purchased the property?

With respect to the new Garfield waste ticket policy, a city official admitted that that the purpose is to force owners to evict tenants who violate their waste policy (specifically leaving an empty trash bin on the tree lawn for 12 hours). I told her that a housing court judge would laugh at me if I attempted to evict for such a silly reason.

Garfield Heights has the highest propert tax rate in the state. When an investor buys and renovated a home, the investor will be rewarded by an annual property tax liability of 4% of the new valuation.

In summary, do your homework.

5 Reply

Matthew Paul

Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes

7y

If you cant raise taxes , raise fees and issue citations . Its more costly in time to fight the citation than to pay it . Legal extortion

Steven Dragmen

Real Estate Investor · Cleveland, OH · Member since 2010 · 24 posts · 17 votes

7y

Bob a few points on the Lead legislation in Cleveland. First if a child in a home that is owner occupied is found to have elevated lead levels in their blood the owner is required to remedy the situation. This becomes a health department issue and happened here in Cleveland last June. In your initial post you mentioned all homes found to have lead would be required to be made "lead Free". The EPA allows for interim controls of lead base paint vs. abatement. Interim controls are much more cost friendly to the investor and or property owner. A lead paint inspection will tell is there is lead paint present at a property, this is measured with an X-ray hand held device. So if there is lead paint on a wall 10 layers deep it will detect it even though this paint is not causing an issue, not valuable when children are being poisoned. A lead paint risk assessment will identify where the lead paint is that is causing the problem with the child and the risk assessor will provide the owner with possible cures to the problem including interim controls and abatement. It will be the owners choice on control method. Lead in the drinking water is tested with a separate test and can be isolated from paint issues all within one risk assessment. The lead paint legislation should not handicap any landlord who takes care of their property. If and when the legislation passes it may be prudent for landlords to hire a risk assessor to help pre screen their properties before hiring a full blown risk assessment. This will give insights to issues that may fail a risk assessment and give the landlord time to correct the issues.

3 Reply

Bob CollettPro Member

OP

Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes

7y

@Steven Dragmen Thank you for the detailed review

Bob

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

7y

@Bob Collett

I'm a landlord in Cleveland and Bedford, and I'm the former treasurer of the Cleveland DSA who are working on getting this legislation passed. I've researched this issue from both "sides". Let's go through your questions point by point, since you seem concerned that I may not know enough;

Why is it appropriate for the city to only require rental owners to test for a lead safe environment and not owner occupants. Did the city require you to hire a certified lead inspector to test the home you live in?

It's appropriate because a homeowner is taking responsibility for their own family, while a landlord is taking responsibility for someone else's family. There is an elevated responsibility when you're taking control of someone else's safety. A taxi driver has to have more inspections of their vehicle than I do when I drive my car. Why? Because when I get into a taxi, I don't have control of my own safety any more. And when a tenant moves into one of my properties, they don't have control of their own safety any more. I have control of their safety.

Not to mention - Bob, I'm sure that if you saw your grandkids eating lead paint chips in your home you'd do something about it. You wouldn't need a law to enforce that. Homeowners in the poor Cleveland neighborhoods most affected by lead are not different from you in that way. But landlords in Cleveland, sadly, don't seem to care when it's other peoples' grandkids.

Characterizing a rental property as a “luxury” property is a stretch. The idea exists out there that all or most rental owners are wealthy and thus should bear the cost of 80 years of neglect by everyone else.

Luxury (noun): an inessential, desirable item which is expensive or difficult to obtain.

I know that not all landlords are rolling in money. (Hi, I'm a landlord who is not rolling in money.) But if you can't afford real estate, it's not like you can't afford to eat. No one is holding a gun to your head and forcing you to buy a rental. Not buying a rental doesn't mean that your children will starve. If you can't afford rentals, your rights are not being impinged on. If I sold my rentals tomorrow, I would still have clothing to wear and air to breathe. My family would still be safe and I would not be arrested.

We're making a choice to buy something that is expensive, out of reach of many people, and not necessary. We're also making a choice to spend our money not on a sports car, or a vacation home, but on a luxury that comes with a large responsibility to ensure the safety of other people. (If you want a luxury purchase that makes money and comes with zero responsibility, go buy index funds.)

Regarding the issue of not being able to afford the expense, I have a few different thoughts.

Sure, I would love to see the city or county offer low-interest loans to landlords to do lead remediation work or other repairs, like they do for homeowners. That would be great.
But, there is already financing available out there for landlords to get work done. I got a $3,000 emergency roof repair done last week on 0% interest financing. If you're creative enough to finance a purchase, you should be creative enough to finance repairs.
And, if you can't find a way to pay for needed repairs, you shouldn't be in the rental business.

In any case, we are off track here because the point of my article is that investing in real estate is not a casual investment, and that investors need to understand that many cities are looking for investors to cure the failures of the city.

First; when you title a post "hostile rental owner environment" and then list incoming lead legislation as one of your points, people may engage with your point.

Second; the lead problem in Cleveland is not from city infrastructure. It's really not. Do your homework. :) This is not Flint Michigan, where the problem is the city water pipes. (Although we have more lead poisoning than Flint!) In Cleveland, lead poisoning is coming from lead paint in old homes and from lead in the soil at former factory sites.

If you can show that the lead in your property comes from a city water source, and the city is trying to make you pay for it, sue them. Go for it. I'll do whatever I can to help. I'll bring in my lawyer buddies. We would love to see more people holding the City of Cleveland accountable.

Gwen, I once had the city of Euclid tell me that the property could not be rented until all cracks in the driveway (minor cracks) were sealed. It was February. Thus the house was to sit empty until Spring.Result: cracks filled in February, knowing that the material would not hold due to cold weather installation.

On this, and Bedford POS - yes, I know that a number of the suburbs surrounding Cleveland have really onerous rules. Some of the stuff that has come up on my Bedford inspections are just ridiculous. (A three page report full of things like "dent in vinyl garage door surround"? Really?) It's like they're bitter about not doing POS inspections any more. And Bedford is trying to do trash restrictions modeled on Garfield Heights, which is also annoying. I've discussed it with my city council person.

So, sure. I agree with you. Some of this stuff is nuts.

Codes requiring landlords to avoid preventable and irreversible damage to poor children, not so crazy.

A city official in Garfield Height told me just yesterday, that if residents had it their way; all rental property would be banned! The fact is that some municipalities do not want investors. It’s as if they would prefer boarded up houses.

This is an interesting point that gets into personal politics more. (Whereas I think you and I agree that the lead paint issue is just common morality.) Honestly, I understand why some homeowners would prefer that there were no landlords in their towns. When landlords drive prices up, and folks who work hard can't afford to buy houses in their own neighborhoods, it's natural to wish the landlords would stop doing that. If there were just boarded up houses, at least prices would fall to where Joe Burger-Flipper can buy a home for his family. And maybe get some of those nice low interest home owner loans to fix it up. :)

This is the kind of stuff I love to discuss over beer. Obviously I'm a landlord even though I understand what the Garfield Heights residents are saying there. My ideal tenant is someone who's renting because they don't want the responsibility of home ownership, not because they can't afford home ownership - but it's not as if I screen for that.

So, I strive to provide clean and safe homes at affordable prices and not be a jerk to my tenants. Short of selling all our properties (which some of my friends on the left would certainly prefer to see, although I think it'd be counter productive right now)... I think that's all we can really do.

2 Reply

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

7y

@Gwen Fyfe the comment about lead paint struck me as odd, mostly because lead paint was used all over the country. I would expect similar lead problems everywhere, unless for some reason Cleveland kids are more likely to eat paint which doesn't make sense. Do they have a theory why Cleveland is seeing a worse problem?

Also from what I have read on the subject, the majority of Cleveland's water supply lines are made from lead. They treat the water to prevent corrosion and therefore limits lead. In Flint, the problem occurred after they switched away from a treated water supply. The pipes corroded and lead leached into the supply. I am just mentioning to clarify that lead pipes do not mean lead problem automatically.

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

7y

Originally posted by @Joe Splitrock:

@Gwen Fyfe the comment about lead paint struck me as odd, mostly because lead paint was used all over the country. I would expect similar lead problems everywhere, unless for some reason Cleveland kids are more likely to eat paint which doesn't make sense. Do they have a theory why Cleveland is seeing a worse problem?

Also from what I have read on the subject, the majority of Cleveland's water supply lines are made from lead. They treat the water to prevent corrosion and therefore limits lead. In Flint, the problem occurred after they switched away from a treated water supply. The pipes corroded and lead leached into the supply. I am just mentioning to clarify that lead pipes do not mean lead problem automatically.

Well, lead poisoning is a problem all over the country. But yes, it's much worse in Cleveland, and yes, there is a reason.

On the pipes; Cleveland's water infrastructure is not made with lead. According to this report by the Center on Urban Policy and Community Development, and other reports like it, "the primary source of lead exposure comes from paint dust and chips in homes built prior to 1978, when lead was commonly added to paint."

So, why that's happening is a fair question with an unavoidably political answer. This is about class and race.

The neighborhoods in Cleveland that are the most affected by lead poisoning today are the same neighborhoods that were redlined decades ago. These are neighborhoods where rich white people moved out when poor black people started to move in, around the 60s when not coincidentally, these neighborhoods had race riots. And many of the homes have had minimal updates since then. You get beautiful original wood interiors... and lead.

There are few homeowners, the homeowners who are there can't afford to make changes (we talk about the low interest city loans, but honestly, they're a pain in the butt to get.) The landlords who buy in these places, as you can tell from this thread, generally aren't interested in putting money into these properties. The few laws that are on the books to combat this stuff rarely get enforced in Cleveland, which was recently ranked the ninth most corrupt city in the nation. I think that was actually an improvement. I remember us being seventh before?

In 2003 the Ohio state legislature created a fund to combat lead poisoning... and never actually put any money into it! When the city of Cleveland has had access to money to combat lead poisoning, it hasn't used the funds. Most of the tenants I place, and other renters I ask, have never seen an EPA lead safe packet until I show them one. It's a farce.

If you want a reason to turn to the bottle, compare this map of lead poisoning in Cleveland to this map of redlining in Cleveland (read the whole report, it's fascinating/depressing) to this map of Cleveland neighborhood quality by our local broker Holton Wise.

We have a long way to go.

Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

7y

Regardless of if/how the city should mandate lead abatement in rental properties, the cost will likely be passed on to the renter. It is economics. Currently the cost of properties takes into account items like expected return, risk, ease, etc. All landlord costs affect the economics of being a landlord. The RE is already purchased and so purchasing it at reduced price to account for this extra expense is not possible. The expense associated with being a landlord has increased. This extra expense either gets passed to the tenant or comes out of the Landlord return. However, all Landlords will have this extra expense. if most raise the rents, the market rent has now increased due to this additional landlord cost. The most likely scenario is over time this will result in a small increase to market rents. This is not likely what the lawmakers had intended but it is what is most likely to occur. To keep rents low requires efficient and lower cost policies. In CA, I am required to provide new tenants a brochure on the dangers of lead and indicate if the unit has any lead. The brochure lists the dangers of old paint that is flaking off as well as other sources of lead in housing. I always indicate that the unit is likely to have lead because I have not verified that an unit is lead free. CA has some unreasonable rules/regulations but this one I think sets a good balance. It informs tenants of what could be dangerous. If I have flaking paint I want to repair it and the tenant should want me to repair it. But I do not want to have the expense of a lead remediation expert.

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

7y

@Dan H. We're required to supply that brochure and form in Ohio too. As far as I can tell, most landlords don't do it. Every single time I place a tenant I have to explain what it is. I got curious so I brought the packet and form along to some political meetings and asked if anyone had ever seen one; nope.

So either most Cleveland landlords aren't doing that, or they're glossing over it during the signing and people don't remember it.

Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

7y

Originally posted by @Gwen Fyfe:

@Dan H. We're required to supply that brochure and form in Ohio too. As far as I can tell, most landlords don't do it. Every single time I place a tenant I have to explain what it is. I got curious so I brought the packet and form along to some political meetings and asked if anyone had ever seen one; nope.

So either most Cleveland landlords aren't doing that, or they're glossing over it during the signing and people don't remember it.

I admit I mostly gloss over it. It is in a packet with items such as the lease, house rules, and a computer media with house specific items (trash day, water and gas shutoff locations, location of circuit breaker panel(s), GFI locations, etc). The lead brochure may get a few sentences like this is a brochure that I am required to provide on the dangers of lead in the home. It lists items like flaking paint. It is accompanied by a letter indicating that we believe this house has lead, but that due to proper maintenance the lead dangers have been mitigated. Sometimes I add that virtually all older houses have lead. While I may gloss over it, they have the brochure to look over in as much detail as they believe is warranted and they have our business phone number (a google phone number) for any questions. None of our rentals would I not live in due to the known lead danger. Most of our units after rehab are B units in C areas (they are nice units for the area - well maintained). The do not have bad paint very long; if a unit needs painting it gets painted.

Bob CollettPro Member

OP

Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes

7y

@Gwen Fyfe Thanjs again for you well thought out response.

Bob

Isaac S.

Member since 2018 · 563 posts · 562 votes

7y

@Gwen Fyfe

Food for thought:

If the city/county does a tax lien and becomes the property owner via foreclosure, why are they not liable for making the improvements? But, the new investor that comes along and buys said asset from the city, is liable?

The city/county plans to tax the asset for perpetuity, usually to pay for infrastructure, OR to pay inflated salaries of administrators and city officials and further grow a usually inefficient bureaucracy.

Since 1978, that local government has known about lead hazards and 40 years later they still have done nothing to fix it, even though that entire time they have been collecting property taxes on those assets. Did they even do as little as offer a property tax break for assets that made those improvements? NO, but they continued to tax the asset and collect revenue.

I think about the phrase "value added"...the investor is ready and willing to put their own blood, sweat and tears and money to add value to the property and on top of that the investors actions will cause the property to be worth more and therefore have a higher assessed value, directly contributing to increased tax base for that local government...how is that local government adding value?

IMHO, the local government is more liable than the new investor for the lead abatement issues, and it is pawning the responsibility onto the new investor because it can.

Tom Ott

Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes

7y

Originally posted by @Bob Collett:

Hi All

A few weeks ago, the owner of a property I manage received a "ticket" from the city of Cleveland because the tenant did not properly place the trash basket out in front of the house. The city sent a "ticket" for $100. The owner was quite upset, insisting on knowing who was going to pay the ticket. The tenants had already moved out, so my first thought was to tell the owner that of course, the owner would have to pay the ticket. Since this was not a sophisticated owner, I decided to simply pay the ticket out of my own pocket rather that go round and round.

Now today, I get a "complaint and Affidvit" from the city of Garfield Heights. The city issued a ticket for $150 for failure to bring the empty trash bin back in, within 12 hours. I called the city of Garfield Heights, and they told me that the fine is waiverable by paying $180. Upon further investigation, the city advised me that there have been three similar complaints on three separate occasions, resulting in three separate fines of $180 each. Understand that the violation is failure to bring an empty trash bin in from the tree lawn within 12 hours.

I spoke with our Councilman at Garfield Heights and he explained that they are not allowed to issue a citation to the resident, so they go after the owner for housing violations which is criminal court.

On another subject, the city of Cleveland is on the verge of passing an ordinance that would pass the burden of proof to the owner, to prove that their house is lead free. So first, you would be required to hire a lead specialist to test and certify... then if they find lead, your would be required to hire a certified lead mitigation specialist to remove all the lead.

My point here is simply to let investors know that there is more to investing in Cleveland area real estate than meets the eye.

Maybe it just depends. We work in Garfield Heights and a lot of other suburbs on Cleveland's Eastside. Over the years we have established a good relationship with the cities. I'm not saying it's fair, but sometimes it helps to have been long established there. They may let little things slide....SOMETIMES. Other times they can be a pain though.

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

7y

@Isaac S.

Out of interest, do you live in Cleveland or have investments here? From your profile, it doesn't look like you do.

Regarding your "food for thought":

First, there are a lot of properties available at absolute rock bottom prices here from tax liens. The city and county both have land banks. They do no repairs, but leave such a margin that if you're a decent flipper you'll be able to make a healthy profit. Even if you have to do lead work. That's how they're adding value. If you want the city/county to hand you a great flip property at a cheap price, and take care of some of the work on it for you first without increasing the price, I guess you'll have to go elsewhere.

Second, the city actually is offering a lot of tax benefits for big investors. Google Cleveland opportunity zones.

Third, this line actually cracked me up: "NO, but they continued to tax the asset and collect revenue." Isaac, I live in a house that is almost 4,000 square feet, sitting on a quarter acre, walking distance to nice bars and museums in the city of Cleveland. I'm even talking to the county land bank you're maligning about doubling the size of my lot for free through their homeowner side yard program. My property taxes this year? $642.62.

That's for the year, not the month. Gosh, I feel the yoke of government oppression weighing heavily on me, don't you?