Drug Zones

[Terry Schell]

I am looking at a C class apartment building of about 21 units;  it is below Market Value and fully occupied.  My research has revealed that it has a bad rep about being a Meth Center, and appeals to those likely into the same substance.  

Question is:  is there something/some ways to turn over the bad apples to rebuild its reputation; or should the local police be notified?  Any suggestions will help me decide to go for it or Run!  Thanks.

Terry

[Jason Mak]

@Terry Schell

I just did a project with a drug zoned building....

http://www.biggerpockets.com/forums/223/topics/206...

Anyways, yes, it can be done but it takes work - here are some things that I learned

- starting building a relationship with a police and community and let them know of your intentions.  Meet neighbors and let them know that you are cleaning up the area.  Word spreads quickly.

- In my city, we applied for the local SAFE HOUSING ordinance and got our own petty officer assigned to our building

- you will need a very STRONG and incentivized onsite manager because he will be dealing with people everyday.  You can't have a pushover.

- underwrite for eviction costs, in my case in CA it was about $500-$800 per unit.  With a property your size, you will probably want to outsource this 

- plan to revamp the exterior to give the project a new look so people "see" the change

- establish ground rules, thresholds, within the law and stick to them

best of luck