Hello BP! I was reading my local online newspaper in my home city this morning and came across something. Longview has had a really big (for this East Texas town) crime wave as of late. At this time, more than half of the homicides in the last 15 months are unsolved. Other than two domestic violence cases, police said narcotics and other illegal activities were involved in some way. That is clearly not only concerning but bad for the community as a whole.
My long term buy and hold strategy is founded on investing in my own back yard. As part of the city's plan to address this issue they are working on several fronts in the community. One of them really caught my eye! This from the article:
The city is looking at ordinance codes and plans to raise the standards for rental properties. Dean addressed the problem of the “slum lords” that profit off of low income rental properties and have no regard for the quality of life in the community. Also, there is a plan to coordinate with the Attorney General’s office to use to Texas Nuisance Abatement Statute to prosecute repeat offenders. As it stands now, it requires six complaints to take action. Dean said that is too many.
I see that not only as a good thing but a GREAT thing. 1 - it's good for the community. 2- It will force the bad landlords that give the business a bad name hopefully out. That is where I see opportunity! The "slum-lords" are not going to want to put money into a property, they will just want to sell out and get out.
I get that buying and holding rental properties in these areas that have had high crime of late is a risk. I totally understand that. But risk coupled with re-vitalization can also equal big reward. I see that not only as an opportunity, but as a good thing.
How about you?
