All Forum Posts by: Jessica B.

You can find a manufactured home at that price in the area. Houses listed at that price elicit bidding wars. 

I would try Mumma Auctioneers.  www.mumma1910.com

Wittenburg is a good area. If you stay East of 72 and north of the park you're pretty safe. I've had great luck west of 72 in that area but there are pockets you want to avoid. 

Welcome Bryant! 

I too invest in Springfield. Some of my properties are great and others are real pains. Neighborhood being the biggest factor. Best of luck to you. If you're careful and know the area you should do very well. 

@Patti Robertson 

- Got my rent number from my sister who had a 4br section 8 rental nearby

@Brian Ploszay

@Brian Ploszay

- Many of my rentals were acquired during the crash too. I know folks are critical of properties in the rust-belt that have a little chance of appreciation. But for me they've done well. Although they are a pain to sell. 

I understand that by dumping money into this conversion I will not be getting it back by increasing the value of the property. I will be only getting it back by decreasing the turnover and improving the quality of tenant. 

Yep, not in Portland. Ohio. 

I've gotten good advice on this forum regarding one of by problem properties. It's a duplex in a roughish neighborhood. The advice I was given was to sell it. I took that advice and listed the property in February. I continue to drop the list price by 5,000 every few months or so. It's now at 25,000. The upper unit is rented at 350, and the bottom is vacant (last rented at 500). So far there's been 0 interest. I think the low end of the local market is flooded because a local investor is dumping 20+ properties. 

The rest of my rentals are doing well, they are only a few blocks away and are all single families. So here's my thought. Once upon a time this use to be a single family. I could just convert it back. There aren't many properties that are 4 bedrooms in the area. I wouldn't have to worry about the lawn or garbage anymore. I wouldn't have to worry about tenant A annoying tenant B or who brought bedbugs into the house. 

Pros: Less turnover, less tenant vs tenant drama, 4 br/2ba is a nicer setup, no lawn or garbage, Section 8 would be easier to work with  

Cons: Rent at 725 vs 850, need to address how the house is metered, conversion costs, might be easier to sell as a duplex to an investor

Am I missing anything? I know most folks are heading the other way converting a single to a duplex. Is anyone else going the other way?

@Scott Choppin

Yes, they need to stay in the building. 

I'm pretty sure the community can find the money. But I don't think they would just donate the money. 

I need to meet with the board and gather those docs. They don't meet often, so it might take a while. But I can send them your way when I get them.

@Jeff Brown, @Scott Choppin I figured out the @ thing!

It's on .7 acres and is about 40,000 sqft. Empty land nearby that large is selling for 2mil. Warehouses in less desirable neighborhoods are 6mil. Nearby apartment on less land sold for 7mil, 7 years ago. 

While selling and renting is an option, a few other schools in the area are in tough situations due to lease agreements. Also most buildings are not setup to be schools and there are a lot of laws and regulations specific to being a school.

Is there anyway to create an investment structure that allowed families and community members to hold this loan/bond? 

Thanks Scott, 

I tried using the mentions @Scott Choppin but it's not working for me. Forgive me if I lack some of the language. Here are my best efforts at answers to your questions:

1. They currently have a bond, that's held by one person. The nonprofit was not allowed to know who the single owner of the bond is. Yes, 8% is high when they entered into this arrangement they were not in a good financial place. Today they are much more stable. I assume that it is tax exempt, but I can find that out. 
2. It's a school
3. The zoning is EX or central employment. I don't know how familiar you are with Portland but there's a max stop right outside. The zoning mostly makes the value of the building worth far more than the loan.
4. Yes, it does. I assume that there is a penalty but I do not know the amount. If I had to guess, they have about 20 years left. 
5. Nearby similar lots are assessed in that range on portlandmaps, this is also just the number I was told
6. No strings that I know of. They've refinanced once already. They bought it to have stability which is hugely important if you are running a school. They can afford it but just barely. It would be great if they could start paying employees more competitive salaries and have less staff turn-over.