Anyone investing in N Omaha?

Question

I’m a new investor based out of San Diego, Ca. Yesterday I came across an investor getting out of the game. They own a total of 28 properties in the Fontenelle area of N. Omaha. 12 are vacant and need extensive rehab. The others are rented out but I’m sure they need rehab as well. From what I could find out about the owner he seemed to be the cliche lower class neighborhood slum lord. I know it’s the lower class neighborhood with a lot of section 8 but does anyone know if there’s a revitalization going on there? I read that a lot of young professionals are moved my to the area? Could it be a good place to find deals? I have a meeting with an agent on Friday afternoon. I’d love some feedback. I’ve read that there is an attempt at economic development for he area. Any truth to that? Thanks much!

Anthony Gayden · Answer

I live in Omaha in the Dundee neighborhood, which is relatively close to Fontenelle. Fontenelle has some nice older homes, but it would be quite a stretch to suggest that the area could even be considered "up and coming".

For now North Omaha is just a lower income area and you would have to go street by street to find the decent rental areas. That is not to say that it is a bad area to invest, but you need to be prepared and know what to expect. It is a cash flow market.

Mark Maly · Answer

Would definitely be interested in finding out more about this.  I've been purchasing quite a few rental portfolios over the last year.  N Omaha can be really hit and miss.  Some areas are definitely better then others.  Some of the portfolios I've bought in the area have been have been really beat up and neglected with a ton of deferred maintenance, others the owners have treated them like their babies and have kept up on them very well.

Definitely one of those areas that need to drive past each property to scope out the neighborhood as even from one block to another there can be big differences in the quality of housing.

There has always been a push for redevelopment in the area like many other cities try to with areas similar to this.  They haven't made a ton of progress with this yet.

Ryann Kluthe · Answer

Totally hit or miss. However, do not throw out the entire deal just because it is section 8. One of the agents in my office at Berkshire is making a killing in North omaha with his buy and holds-not all his properties have the best tenants and they tend to need more clean up after a lease ends however at the lower end purchase price your cash flow is great.....and your agent should be your eyes on the ground. Have them send you videos and make a list of what needs done right away and what will be in the 5 year plan....that's what i do for my San Diego investors.

Jenessa NeSmith · Answer

We have a property in NoDo (North Downtown Omaha) that we rent out on Airbnb.  I agree with everyone else about going block by block...our house is on a quiet street across from a school and two houses down from a church.  However, it's close enough to the main tourist area that it has been quite successful.  There has definitely been revitalization in the NoDo area, especially around the Century Link Center.  Kiewit just bought a bunch of vacant buildings to turn into a new headquarters.  There have been some neat developments around 24th and Lake with some art galleries and local businesses, and if you get super north by Florence or Minne Lusa you can find some cool neighborhoods as well.

Feel free to reach out if you any specific info, as we are pretty familiar with the area!  Parts of North O that are close to Downtown would make some great Airbnbs.

Ted Kaasch · Answer

Justin if you do not buy that package I would have a buyer that would.  Let me know if you want to work out a deal on part of that.

Carter Doering · Answer

Hey, guys! I recently started wholesaling homes in the Omaha Metro. I am close to putting a house under contract that is on N 37th and Spaulding. House received a new roof not too long ago and the owner started to complete the house but wants to sell it. It is currently a 2/1 but can be outfitted to be a 3/1 and rent for $800.00-$900.00 per month. Message me if interested. I would love to meet investors who flip or rent in the Omaha metro–I should have 8 houses to choose from by the end of May. Thank you.

Best,

Carter Doering

Stephen Anthony · Answer

As many others have mentioned, pretty sure I know of the investor who owns these houses. We started looking at his properties in fall last year.

Now, not 100% sure we're talking about the same properties/owner, but if we are, the vast majority have been incredibly neglected as have the tenants. The owner I am thinking of would not hesitate for a second to drastically lowball the amount of work/$$ to rehab or hide problems from potential buyers. He keeps his properties in miserable condition - little to no maintenance, does not address pest problems, not to code including basic safety devices, etc.

Proceed with extreme caution with these, especially if you're out-of-state/relying on someone's elses word about their condition.

Feel free to message me and I can confirm if it's the same investor, share further details, etc.

(And Brian you're correct, he wants out but isn't particularly motivated and is basically waiting for the right buyer who doesn't do their due diligence and will pay way too much for them.)

Brian Washburn · Answer

I think I know of the package you are talking about. Unfortunately, my realtor and I have been trying for 2+ weeks to get into one of these homes to take a look and cannot get the owner to even respond to us. Doesn't seem like he is too motivated to get these things sold...

Anyone investing in N Omaha?

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