Milwaukee, WI · Member since 2012 · 12 posts · 0 votes
Sorry, this is a repost (I realized my original didn't have a descriptive title so I changed the title).....
Ok, so I was supposed to close on a duplex this upcoming Thursday. Today I'm over there outside looking at the place figuring out what I want to do with it, and start taking to one of my potential neighbors. He asks me if I know what is the deal with the place next door, and I say no - honestly I thought it was a regular apartment building. Turns out it's a halfway house for bipolar and schizophrenics. I looked it up and a few years ago one of the patients there stabbed and killed another patient. The place is right next to to the property I was going to buy (across a quiet street), with a bunch of windows facing the duplex. I was over there today and a guy was just sitting outside staring at me and my girlfriend. Creepy. I can't believe I almost bought this place. It sucks because it's a foreclosure and a great deal...but I gotta walk away....right?
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
I own a rental house next door to a group home. The people hang out in the front yard and look like zombies. Fortunately, my tenant has been there for 10+ years. If I have to rent this house in the future, I will try to show it on rainy days when the people are inside.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
ROTFLMAO! Just wait, it will get cheaper, then buy it and lease it to the organization running the halfway house call them first, they are probably a non-profit so you could do a triple net lease. They may not be able to buy but may be able to lease, suggest either more clients or living quarters for staff. Otherwise, walk away. :)
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
13y
Steve Paczesny It would be a nice temporary win if you pulled off the maneuver Bill Gulley suggests. Non-profits are wobbly - even if government funded/subsidized.
Chicago, IL · Member since 2013 · 105 posts · 31 votes
13y
It depends on what your risk tolerance is. How desirable is the neighborhood; will you have a hard time trying to resale? Are you getting a smoking hot deal or is it mediocre now that you know whats next door?
I use to be a moderator for a mental illness online support group. Bipolars are not violent though they do have a tendency to self harm. I'd stay clear of boderline personality disorder patients and I somehow managed to not interact with any schizophrenics. What I'm saying is-- it might not be that bad; although I personally would pass.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
I own a rental house next door to a group home. The people hang out in the front yard and look like zombies. Fortunately, my tenant has been there for 10+ years. If I have to rent this house in the future, I will try to show it on rainy days when the people are inside.
Milwaukee, WI · Member since 2012 · 12 posts · 0 votes
13y
It's a good deal. 75k for the duplex. Market rent is about 750, so I'd meet the 2% rule. I'd likely be putting between 10 and 15k into it though, so then would be about 1.7%. But I don't know what my obligations are to disclose this to potential renters now that I know, I'd probably pass if I was a tenant. I also don't know that I'd feel totally safe for my girlfriend who's living with me (we'd be owner occupants for at least a year or two before renting out both units), as the people next door are allowed outside unsupervised during the day. Likely nothing would happen, but I'm just not so sure I'm willing to take that risk.
Milwaukee, WI · Member since 2012 · 12 posts · 0 votes
13y
Yea I suppose it is a bit funny :)
My gut is telling me to walk away. It's my first property and I'd be owner occupant, living with my gf upstairs and renting out the lower, would be a couple years before we were planning on moving and renting both units if we got the place. I'm honestly more concerned for her, as she is an attractive 23 year old....I'm sure nothing would happen but if it did i couldn't forgive myself. Funny thing is she's telling me I'm over-reacting and it's no big deal (she's not the one buying it though). Plus then there is the resale issue, renting issue (do i have to disclose?), etc...not to mention they give me the willies.
Funny how emotions can change so quick in this. I've been fighting to get this place for 2 months (issues with bank not wanting to lend), and was super excited this morning going to home depot planning everything out....sigh. Oh well, next!
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
13y
Steve Paczesny First let me say that I have all the sympathy in the world for people with mental illness, and have extensive experience working with them in various settings. I will also tell you that at one time, someone that was schizophrenic, imagining I was a character in a game, decided that to win the game, he had to take me out, and kill me. This entire scenario was in his head, and had nothing at all to do with the reality of what was happening. He then proceeded to drop some type of poison in my glass of water while I reached for an Excedrin for my headache. I couldn't breath. I was rushed to the hospital with my windpipe closing up, on Christmas Eve, as my children watched.
Schizophrenics, unlike most mentally ill have such a wide range of symptoms, and some of them are incredibly dangerous. I would walk away. Period.
Milwaukee, WI · Member since 2012 · 12 posts · 0 votes
13y
Yikes, Karen, glad you are ok. That is scary. I agree with you, in that I have a ton of sympathy for mentally ill people, and I wish them nothing but the best. Just not right next door.
Chicago, IL · Member since 2013 · 105 posts · 31 votes
13y
Dont fear for your girlfriends safety. Its a halfway house not a mental institution. If they were completely unstable they wouldn't be there. They, as a group, are very emotionally high maintenace so expect some drama. It all depends on how tight a ship the staff is running.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
13y
Steve Paczesny Not all types of mental illness creates situations that can be dangerous. However; schizophrenics, and especially paranoid schizophrenics are one of the few that can be prone to delusions, paranoia, and dangerous reactions. Unfortunately there is no longer the treatment options available for the severely mentally ill that there once was, therefore; they end up in half way houses rather than hospitals. Families are often to afraid to have them in their homes, so they end up in our neighborhoods. It's sad.
Orlando, FL · Member since 2013 · 165 posts · 62 votes
13y
There is a very important lesson to be learned here that no one has mentioned. Always talk to the neighbors. They will tell you stuff that no one else will mention.
I assume you were just buying this duplex to rent. If you got it cheap enough, who cares what is next door.
Investor · Wichita Falls, TX · Member since 2010 · 3k+ posts · 603 votes
13y
Damn Ron, That description of the guy in the window really hit home LOL. I too was busting up laughing when I read it. I'm glad you did your due diligence and came across this fact! I definitely learned something from this thread.
Karen, wow. People can do the most unpredictable things fall victim to their psychosis. I'm glad you survived such a horrible thing and can share with us your experience, thank you.
I am so amazed at the creativity of some of the suggestions in the comments by Rob K and Bill Gulley. So much to learn!
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
Need to look at the obvious, what may appear to be a road block might be a bridge.
I'll bet that the halfway house was established after the duplex was purchased and financed. Highly likely that any future appraisal will mention the halfway house as an external obsolesence issue, a factor that is external to the subject that reduces value.
Had industrial property purchased cheap, a factory a couple lots away and a house on the other side. The factory was an issue, but got the other two owners to agree to sell, then approached the factory offering them the rest of the block, they jumped on it, additional parking for employees (they were parking in the street) and expansion, doubled the money.
As to showings, if you need to go through the red light district or have undesirables in an area, the time you show has an obvious bearing on when to show. Early mornings, such people are usually not out yet, in the worst weather (that is safe) keeps people inside. Realtors are taught too that if they are taking the buyer to a property or they are following the Realtor, to take the route to the subject that shows the best, not the shortest route necessarily. If you don't have to drive by hookers or the back of trashy commercial joints, then don't go that way. :)
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
13y
These halfway houses are becoming extremely common in many neighborhoods. We talked to neighbors, asked the condo association all kinds of questions, especially how strictly they enforced the clause about renting to only single family, no non-related roommates allowed, as we are living here for a while but may turn it into a rental. Turns out, apparently, they can enforce it with owners, but it is illegal to enforce those rules on health services companies, at least in our town. It also appears we have 4 units rented to these health services companies in our 100+ unit complex. The condo assoc said they did not have to disclose that to me. I did my due diligence with crime rates, sex offenders, talking to neighbors and walking the neighborhood different hours and days. It never came up. Apparently, most of the owners here still don't know about it. I only found out after seeing a sign posted on a back sliding glass door (privacy fence gate was open) that said, Residents must smoke outside. I thought, Wow. Blatant roommate violation. Asked the condo board about that unit, and they told me there's nothing they can do, it's the law, but they aren't allowed to have any violent people there. Haven't had any issues with it. Just weird that they don't even have to disclose it to you.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
13y
Lynn M. You bring up another good point. We actually lived in a subdivision one time that had houses with large square footage, and there were 2 women's recovery homes. Neither were ever a problem, and in fact, all the women were very nice. However; there are neighborhoods where there are halfway houses with violent sex offenders, and the neighbors don't even have to be informed, though most are repeat offenders.
I once had a group of counselors want to lease space in one of our buildings. When pressed, I found out their clients were all sex offenders, that had molested women and kids. I told them I wouldn't lease to them. They insisted their clients weren't violent! I responded that I was one of those people that thought the death penalty was appropriate for those crimes, and that ended that conversation.
Milwaukee, WI · Member since 2012 · 12 posts · 0 votes
13y
Ron Climer, yes I would be buying it to rent. But I'd be living there as an owner occupant for at least 2-3 years - this would be my first property. If this place was a house or two away I wouldn't care, but being right next door...I can imagine a high tenant turnover rate, and I'm not sure if I'm required to disclose this to potential tenants or a future buyer if I sell. Maybe if I can get the bank to drop the price enough, then buy the building in a few years that is currently the halfway house and convert it to rentals...hmmmm.
Do you have a management company halfway house moved in now there's a lot of problems can a halfway house legally move aside a business that's already in business before the move there please advise what can I do to get them away from me
Do you have a management company halfway house moved in now there's a lot of problems can a halfway house legally move aside a business that's already in business before the move there please advise what can I do to get them away from me
This thread is over ten years old haha.. wonder how the place turned out.
But to answer your question I don't think there is anything you're able to do in that situation.. it is always best to speak w/ a lawyer to see if there's any available legal options.