All Forum Posts by: Chris English

As I understand, rumors have abounded for years about gentrification across the river from downtown but this year people seem to speak of it with a sense of credibility. What's everyone's thoughts? 

I am the first to catch word of retiring landlord with 150 dirt cheap off market properties in a small town close to me.  I'm talking (2) $60K duplexes, and one $125K fourplex all above 2.2% rent to price in fair/good condition. I've been in the game in this market a while as I have 12 units and 3 single family homes and know this is a great deal. I really want to absorb as much as possible but only have about 70K in cash available, so I'd rely on financing, which I am no stranger to. I am just now getting the ball rolling with some lenders. Problem is, the first bank I've talked to said that I am going to get killed in fees, closing costs and interest, as it would be treated as 3 separate very small mortgages. 

Talking strategy, what would you do in this situation?

I would throw out Riverside. It's a fairly rough area so I don't know what your risk tolerance is but there is significant change afoot. The city is putting in significant investment to the park on the west side, bike trail and river improvements to the east and its also getting squeezed by the giant new tech district being built just a half mile to the south. I am already starting to see properties listing for 300K, a four fold increase from what I've known to be typical in the area.

I think what's happening in riverside is pretty exciting. I know it has been very slow to change and things having come to fruition but for the first time I am really taking a look. You have the new investment from the city and Eli Lilly in Riverside Park to the west and the huge new Tech 16 project to the south. Towards the south I have seen listings and proposals for 200-300K for SFHs. There is substantial momentum building for the first time but this area still is still severely economically depressed, the crime is really bad and the reputation will still keep people away for a long time.