How Can I Acquire Neighboring Properties from Slumlord

[Cole Barthel]

I own a single family rental that does very well and I live in my other SFH in the same town.

Right next door to my house there are 2 properties, both 6 unit 4 bed 2 bath apartments. According to public record and info from tenants, the owners purchased both properties in 2021 as a contract for deed. Purchase price $850,000 ($550,000 down payment, $300,000 contract for deed with seller). 

The new owner has since failed to pay utility bills in one of the two building, causing it be condemned. It is now a spot for vagrants to break in to. The owner has been letting an undocumented family live there and try to fix it up at the cost of the family and charging them rent. Probably under the table or something. Very heartbreaking. 

In the second building there are 2 units rented out. According to the current tenant, there are repairs here and there that need to be made but the owner just wont do it. He also doesn't do any any lawn maintenance, or maintenance in general. 

Also, searching the properties on the county tax auditor site shows that the property taxes on both properties haven't been paid since 2020 by the previous owner. Shows close to $90,000 delinquent. I'm surprised the properties haven't been seized yet. 

These properties are just going down the drain and bringing the neighborhood with it. The city is about to build a new park right next door and I fear that these properties will somehow ruin that too. 

I am looking for advice. I would like to acquire these properties somehow and fix them up as someone who actually cares about this community, but I'm not sure if it's possible. I might settle for helping someone else acquire them as well or figure out a way for the previous owner to reacquire them. Just as long as the owner is someone who will actually take care of them. 

I think a perfect world would be convincing the owner to sell me the properties by assuming the existing mortgage and maybe giving him a little something extra. Not sure that he deserves something extra but if that's what it takes. Also, a loan to pay off the delinquent property taxes and make needed repairs. 

All advice on what to do is appreciated.