What's a slumlord to do?

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changing the neighbourhood fits the strategy but the risk factor? core competencies to avoid expensive lessons.maybe partnering with somebody that has gone the route would be better

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@Mark VejnarIn 2014 we started buying properties in Charleston that fit your description perfectly. We are wholesaling or "prehabbing" these properties rather than all-out rehab/flip. I have found that the keys to making this work are: 1. having buyers in place who are interested in doing community redevelopment. I have collected a buyer's list of owner-occupants for the C&D class properties and "big-thinking" investors for the F-class lots and houses. There are speculative investors buying in every market, it is just a matter of finding them. Some of my buyers are local, but many are from out-of-state. I know some New Yorkers who are pretty hot on the Upstate market. I can hook you up with them if you like.2.buying them CHEAP. We are buying vacant houses for $5,000 - $15,000, Occupied houses for $15,000 - $25,000 and vacant lots for $1,000 - $5,000. I have looked at a few deals in the Greenville/Spartanburg area and I would want to buy them even cheaper in your market.More recently - I have negotiated a deal with a local investor who wants to build a portfolio of 20 Class C-D rental properties, but he wants me to provide them in "turnkey" condition. We just signed our first agreement for a property purchase last week. We have worked out an arrangement where I find properties, tie them up under contract, assign the contracts to him , and he puts money in escrow for the repairs. I manage the repairs and coordinate with my property manager (a close friend) and get them rented and managed for him. Lather, rinse, repeat. This is a great way to turn the "F" properties into C or D properties and revitalize neighborhoods. If you would like to talk more about putting something like this together in Spartanburg, Please call me to discuss.

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You're not too far from Greenville, so, Simpsonville is not an isolated little town in the middle of nowhere. While Greenville might not be as big as Atlanta or Charlotte, it sort of runs into Spartanburg. What if you were to approach the artist communities in the area and ask them what they thought of a fully fenced, affordable artist community that can be live/work, because the zoning is not a problem. Artists love to live together to inspire each other's creativity. They like it a little gritty and not fully formed. They would be willing to pay more in rent than the people currently in that neighborhood, because it would be still below rental rates in the fully renovated artist communities with big lofts etc. I'll leave the rest up to your imagination.

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Mark Vejnar what cities are you talking about? This strategy could be an excellent long term play if you're in a market with a growing population and job market. I know of several developers taking this same approach in Atlanta. Most established developers will always have an inventory of land so that they can jump in opportunity when it comes about in he future. As long as you can afford to carry the properties until then then it certainly would be something worth looking into.

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Reexamine your real estate goals. Does what you're proposing fit in with them? The word "speculate" seems to be reserved for those who could "take it or leave it" since they have so much money they can take the chance that it might go big. (Buying a square block in "just the right place" in Detroit 4-5 years ago for example.) I'd look at bestplaces.net see the outlook and true stats for the area and gather as much other relevant data that could be used to reach your goals. Let these data determine your next step, you'd be more likely to come out on top. Finally, unless the town is very close to Charleston, SC I'd bet you're not going to see a huge turnaround (which is what you'd need) in anything less than 10+ years (or ever?) in our generally beautiful-but economically challenged state. Good luck!

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I really like the big thinking here. One piece of wisdom I've been shared was "buy the ugliest house on the lot." Sounds like you're right there! I'm just brainstorming, but what about this: flatten everything, build it into a mobile home park for the time being (which sounds like an improvement, easy rents), then once the area is in gentrification you can either not renew leases, pull the mohos, and build what you like or sell to a developer.Of course putting in a park will take a little development, but it sounds like you are already up for that?

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Ok, you can capture control of a geographic area, but what's the economic growth going to be like,next year, five years ... ten years out. City planners struggle with this all the time, but a grant for a Redevelopment District takes years to write and get approved.Assume you go it alone, is there any brand name stores in walking distance - - think "Why would someone want to move here"?

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ll talk specifics, I love the outskirts of 'Downtown Greenville'. Not Mainstreet or the already yuppie areas, but the fringe. I have my own beliefs on the area would love to know what the BP blogosphere is involved with. Within a mile or 1.5m of downtown I see houses being bought for under $50k and sold/trying to sell for ~$100k (289 Werts, 253 Reeves, 9 Deering). That's on the south-west side of town that historically has been rundown mill houses (Sullivan, Dunean, Sterling) All the boarded up houses have sold in the past 3 years and not much is for sale that isn't the back end of a flip. West Greenville is farther along but same story- Mill houses being upgraded or knocked down and rebuilt entirely. What are everyone's thoughts on these changes? Does it have legs? Is it worth chasing?What streets are 'good'? what streets aren't worth messing with? Anyone have success stories or stories of disasters?This is just a screen shot of the city limits (red line). Full disclosure, admittedly, I am talking up my holdings, I'm focused that randomly shaped area north east of Dunean. Its called Mills Mill. Its a mile from Fluor Field and a mile and a half from Greenville Health Systems. Its textbook. Anyone in the area take a drive down Stafford Street. Palmetto Adhesive just tore down the dilapidated back end of their factory/plant. If you look on zillow the lots have already been subdivided. The city moving into that area is just one aspect. I see the neighborhood changing. New construction is popping up here and there, houses are being renovated on every street. I would be interested to hear from other investors in the area -or- other investors who have looked at this area of focus -or- comparable areas in Greenville.

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@Mark Vejnar I look forward to speaking with you soon. I am an old-school "talk on the phone" kind of guy. I find web forums a good place to meet people, but a difficult way to have a meaningful conversation.

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@Russ ScheiderI've only been to Spartanburg twice in my life. Why the interest in Spartanburg? Is it because they are just now starting what Greenville started 30 years ago?Most of what I'm finding is Greenville county, and some in the city of Greenville. Have you razed any of those neighborhoods and started from scratch with new development? What's been your experience with buyers' perceptions. A friend bought in the Berea area of Greenville. He has a nice home and safe neighborhood, but the reputation still seems to supersede reality. Have you experienced this?