All Forum Posts by: Rick H.

I think basic safety standards are good and should be enforced, but much of the regulation goes far beyond this and seems intended more just to create work (and larger pensions) for bureaucrats.   As noted above, this has led housing to become unaffordable for far too many.  Unfortunately, I think what will ultimately happen is that voucher programs will be greatly expanded, as the government tends to favor "solutions" that require massive amounts of taxpayer dollars be directed to treat symptoms without addressing the underlying problem (too high of costs), thereby fueling the continued rise in costs (see healthcare and higher education).

Below is an excerpt from an interesting read which is also linked below.  The gist is that governmental efforts to regulate, and presumably improve, low income housing, have made such housing unaffordable for low income tenants.  While it is hard to argue against safer housing, out of control municipal regulations, fines, and fees have almost certainly hurt the low-income populations such policies are ostensibly designed to protect.  I made the mistake early in my career of buying a building in a D area and have seen this firsthand.  You definitely do not want to rent to low income tenants (in highly regulated areas) if they are not receiving some form of housing assistance.  Too many will not be able to meet their obligations long term and evictions suck for everyone involved.  As noted below though, such assistance is increasingly only available to a lucky few.  So, what is the solution?

As a nation, we appear to have upgraded our notions of what constitutes acceptable housing without figuring out how to make this housing affordable to poor people. In 1970, according to a 1998 report from the Center on Budget and Policy Priorities, there were 6.5 million low-cost ($469 or less a month in current dollars) rental units and 6.2 million low-income ($18,750 or less a year in current dollars) renters. By 1995 it was 6.1 million low-cost rental units and 10.5 million low-income renters. I couldn’t find exactly comparable data for today, but in 2013, according to the National Low Income Housing Coalition, there were 10.3 million households classified as “extremely low income” (incomes at or less than 30 percent of the area median) and 5.8 million rental units they could afford (that is, with housing and utility costs amounting to 30 percent or less of the threshold income).

Some people do get help with the rent. About a quarter of eligible low-income households receive federal housing assistance. Local programs such as rent control and requirements that developers include affordable housing in their projects help others, but I couldn’t find any national numbers on this and doubt that they’re very big. Overall, housing assistance is only for a lucky minority.

http://www.bloombergview.com/articles/2016-04-18/w...

If the ownership situation has been or could be resolved (through probate, or possible other means), and the heir is indeed the sole owner, get an option to purchase subject to the taxes and liens and then use the pending sale as leverage to negotiate with lienholders.  You will need the heir to sign an authorization allowing you to speak to them.   Not sure about the process in NC, but you may not even need to pay the full amount of taxes upfront in order to stop the sale.  

Freddie Mac and Fannie Mae both offer cash out refinancing without any seasoning so long as the amount financed does not exceed the original purchase price plus closing costs. This works well for small and modest rehabs. Maximum LTV is going to limit you at 70% anyway. So for example, let's say your purchase a property for $70k, do a $15-20k rehab, and the property now appraises for $100k, you should be able to get a loan for $70k. Hometown National Bank in Joliet has done this for me. It is referred to as delayed financing.

I would definitely be interested!

Welcome!  Always good to see more people on here from Joliet.  Look me up when you get back.  Maybe we can grab some coffee.    

Hi Stephan,

Welcome to BP!  One thing I wish I had more of is construction background.  I think it will prove very valuable to you as an investor.

While I am not exactly a local, I have begun marketing in in southwest Michigan, and was wondering if you could offer any insights on the state of the market there, particularly in Kalamazoo.  It seems like the employment picture has improved dramatically over the last year, but housing prices are still low.     

I agree too, Sears Outlet.  I got a nice stainless steel kitchen a few weeks ago for around $1500. You can look at the stock and prices online, but make sure you actually go to the store to view any scratch and dent items.  Some are fine, some are not.  

The 5-day notice can only be used in cases of non payment of rent.  Unfortunately, I believe she would probably have to issue a 30-day notice (to terminate the de facto lease) and then it could still take several more weeks if he is determined to drag things out.  In Will County, I use the Law Office of Patrick A. Meszaros for my evictions and I am satisfied with their services.  Total cost with court fees is $511. 

Hi Chris, welcome!

Do you have any current real estate experience or are you just thinking about getting started?