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  #1281  
Old Posted May 27, 2023, 2:48 AM
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JManc JManc is offline
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Originally Posted by AviationGuy View Post
Yes. Many of these complexes in this part of the country, and I assume elsewhere, are 50 or more years old. My first Austin apartment was in a complex built in 1968. It was super nice when I lived there in the late 70s, but is in awful condition now. There have been complexes here where stairwells collapsed or almost did, as well as exterior walkways along the upper floors. The best thing is for them to just be torn down and replaced. I know that's happening, but not nearly enough. One area in Austin called Riverside had many of such complexes, but that area is being rebuilt. I haven't been over there in about 20 years, so I really don't know the full extent of changes. I'm thinking someone like Kevin may know more about that area.
At least with Austin, you guys have insane property values where the dirt under those old complexes are worth redevelopment. In Houston, there are tons of them in parts of town with little to no market growth potential and the owners do the absolute bare minimum to keep them up to codes.

I googled Riverside, seems close enough to central Austin for it to be ripe for redevelopment. Especially seeing how close it all is to 35.
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  #1282  
Old Posted May 27, 2023, 2:56 AM
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Originally Posted by JManc View Post
At least with Austin, you guys have insane property values where the dirt under those old complexes are worth redevelopment. In Houston, there are tons of them in parts of town with little to no market growth potential and the owners do the absolute bare minimum to keep them up to codes.

I googled Riverside, seems close enough to central Austin for it to be ripe for redevelopment. Especially seeing how close it all is to 35.
Gulfton, though, seems to be a prime location next to 610 and just south of Uptown, and adjacent to high dollar Bellaire. Wouldn't it be prime real estate? Or would it be too much of a logistical nightmare to raze that entire apartment area? I have no idea, but there have to be bunch of real estate developers who would love to have that area, at least in theory.
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  #1283  
Old Posted May 27, 2023, 3:36 AM
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Originally Posted by AviationGuy View Post
Gulfton, though, seems to be a prime location next to 610 and just south of Uptown, and adjacent to high dollar Bellaire. Wouldn't it be prime real estate? Or would it be too much of a logistical nightmare to raze that entire apartment area? I have no idea, but there have to be bunch of real estate developers who would love to have that area, at least in theory.
Densest part of Houston. Yeah, I think redeveloping all those apartments would be a massive undertaking but not something that hasn't been done before. About 10 years ago, a massive complex was redeveloped in phases into high rises and retail but it was in uptown.
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  #1284  
Old Posted May 27, 2023, 4:58 AM
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Densest part of Houston. Yeah, I think redeveloping all those apartments would be a massive undertaking but not something that hasn't been done before. About 10 years ago, a massive complex was redeveloped in phases into high rises and retail but it was in uptown.
I'm told that old complexes in the Montrose district have largely been torn down and new construction has replaced them, mostly townhomes and condos. But of course Montrose in Houston is like Austin's inner city. Tons of incentive for new construction. Seems like I've read that similar things have happened in Greenway, for the same reason. I need to explore a lot more, and will if I can manage to move to the area.
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  #1285  
Old Posted May 27, 2023, 3:00 PM
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The problem is that you buy it for (say) 245k, and you sell it for 260k a decade later. So what was the point? Those types of standard 2 bed condos aren't usually forever homes, and don't seem to be great investment vehicles, though I'm sure some people have figured it out.

Also, the description is the typical broker BS. It isn't close to the Brown Line. A resident would be using the bus. They aren't gonna be walking 20 minutes in January to the closest train stop.
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  #1286  
Old Posted May 27, 2023, 3:16 PM
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Steely Dan Steely Dan is online now
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^ it's actually only a 15 minute straight shot walk right down kedzie to the kedzie brown line stop, but yeah, that still pushes the limit of most people's "walking to the train every morning in January" distance.



Anyway, make sure the building even allows short-term rentals to begin with.

When the 2nd floor unit in our 3-flat was on the market last summer, there were a couple of AirBnB invester types who inquired about the possibility of doing short-term rentals with it, to which we sternly replied with a "HELL NO!!!!"


i don't know why anyone would want to live in one of these smaller-scale chicago-style "missing middle" buildings that also serves as a part-time hotel with a revolving door of god only knows who coming and going all the time.
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Last edited by Steely Dan; May 27, 2023 at 3:46 PM.
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  #1287  
Old Posted May 27, 2023, 3:30 PM
iheartthed iheartthed is offline
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Originally Posted by Crawford View Post
The problem is that you buy it for (say) 245k, and you sell it for 260k a decade later. So what was the point? Those types of standard 2 bed condos aren't usually forever homes, and don't seem to be great investment vehicles, though I'm sure some people have figured it out.

Also, the description is the typical broker BS. It isn't close to the Brown Line. A resident would be using the bus. They aren't gonna be walking 20 minutes in January to the closest train stop.
If it's a rental property then it would ideally pay for itself and be a $260k asset in a decade. I think relying on Airbnb to monetize the property sounds extremely risky, though.
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  #1288  
Old Posted May 27, 2023, 4:29 PM
Kngkyle Kngkyle is offline
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The problem is that you buy it for (say) 245k, and you sell it for 260k a decade later. So what was the point?
Because appreciation isn't the only way to make good money in real estate. It's more of a get rich quick scheme that is basically all speculation. Chicago (and most of the midwest) is a cash flow market where you can net positive cash flow in excess of 10% in the first year and that generally just goes up each year given costs are mostly fixed (if you have 30-year fixed mortgage).

In the fast-growing speculative markets it is often hard or impossible to break even with rental income. You are entirely banking on the current growth trend continuing.
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  #1289  
Old Posted May 27, 2023, 4:32 PM
iheartthed iheartthed is offline
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Aretha Franklin's childhood home in Detroit is on the market:

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Aretha Franklin’s 6,000-square-foot childhood home in Detroit’s historic La Salle Gardens neighborhood was put back on the market Sunday after a recent sale fell through. It’s listed at $379,900.

...

The house was re-created on a movie set in Atlanta for several pivotal scenes in the 2021 film “Respect,” which chronicles Franklin’s life from childhood in the 1950s through her breakthrough as a global star.

In 2013, the house was listed as a bank-owned property that was sold ‘as is’ for $46,874.



https://www.freep.com/story/entertai...t/70195499007/
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  #1290  
Old Posted May 27, 2023, 4:34 PM
lio45 lio45 is offline
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Originally Posted by iheartthed View Post
If it's a rental property then it would ideally pay for itself and be a $260k asset in a decade.
Pretty sure that even in Chicago, cap rates aren't anywhere near high enough for something to pay for itself in only a decade, if bought with standard (minimal) cash down.
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  #1291  
Old Posted May 27, 2023, 4:36 PM
iheartthed iheartthed is offline
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Originally Posted by lio45 View Post
Pretty sure that even in Chicago, cap rates aren't anywhere near high enough for something to pay for itself in only a decade, if bought with standard (minimal) cash down.
Not pay for itself in a decade. The rental income just needs to cover the mortgage payments and maintenance costs. If you're able to do that then the profit will be the sale price minus balance of the mortgage (and fees).
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  #1292  
Old Posted May 27, 2023, 4:41 PM
lio45 lio45 is offline
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Not pay for itself in a decade. The rental income just needs to cover the mortgage payments and maintenance costs. If you're able to do that then the profit will be the sale price minus balance of the mortgage (and fees).
Then I agree with Crawford that it's a pretty shitty net return on your money, all things considered.
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  #1293  
Old Posted May 27, 2023, 5:04 PM
iheartthed iheartthed is offline
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Then I agree with Crawford that it's a pretty shitty net return on your money, all things considered.
Went back and did some rough math, and 10 years would be about the break even point on a 30 year using today's interest rates under this scenario. So yeah, not a good buy if the property only increases by 15k over that time and you cannot refinance in the near future. Last year it would've been a great investment...
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  #1294  
Old Posted May 27, 2023, 6:39 PM
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Wigs Wigs is offline
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Then I agree with Crawford that it's a pretty shitty net return on your money, all things considered.
Lio makes his money as a landlord. I'd trust his advice on this topic.
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  #1295  
Old Posted May 27, 2023, 6:41 PM
mhays mhays is online now
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I always have to remind myself what this thread is about! Basically everything on SSP is about real estate.

Condos in in Seattle's core are up maybe 20-25% since I bought mine in October 2008, right as the shit was hitting the fan (put money on it in 2007, then didn't bail when I could've). From the low in 2009/2010 things would look much better.

But in 2018 they were much higher per Redfin/Zillow, or mine was. They were already going down, then Covid hurt values near offices. I suspect the reopening of borders, particularly the spigot from China, will change that once again. But not yet.
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  #1296  
Old Posted May 27, 2023, 6:58 PM
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1850s home with large addition on back. I love the historic front with those gorgeous doors, but the addition looks like gross EIFS/synthetic stucco
5 bed, 6 bath home in St. Catharines, Ontario's small but historic Yates Street district. Easy walking distance to St. Paul St, the heart of slowly rejuvenating downtown St. Catharines.
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Meticulously Rebuilt To Offer Over 6200 Square Feet Of Finished Living Space That Seamlessly Combines The Elegance Of The Past With The Conveniences Of Modern Living. Impeccable Attention To Detail And The Grandeur Of 10+ Ft Ceilings... New Energy-Efficient Windows Throughout. Radiant In-Floor Heating And Elevator Adds An Extra Level Of Convenience. Situated On A Ravine Lot, Offering You The Perfect Blend Of Privacy And Natural Beauty. The Heated Driveway Can Accommodate 8+ Cars...

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  #1297  
Old Posted May 27, 2023, 8:42 PM
jmecklenborg jmecklenborg is offline
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Originally Posted by iheartthed View Post
Aretha Franklin's childhood home in Detroit is on the market:
She was born in Memphis, TN in this much smaller home:
https://www.roadsideamerica.com/story/34301

By all accounts, her dad was a total scumbag preacher, so presumably that's where most of the money came from to buy that big house in Detroit.
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  #1298  
Old Posted May 27, 2023, 9:43 PM
iheartthed iheartthed is offline
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By all accounts, her dad was a total scumbag preacher, so presumably that's where most of the money came from to buy that big house in Detroit.
He was a leader in the Civil Rights Movement.
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  #1299  
Old Posted May 28, 2023, 4:05 AM
AviationGuy AviationGuy is offline
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Originally Posted by jmecklenborg View Post
She was born in Memphis, TN in this much smaller home:
https://www.roadsideamerica.com/story/34301

By all accounts, her dad was a total scumbag preacher, so presumably that's where most of the money came from to buy that big house in Detroit.
What accounts were your referring to?
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  #1300  
Old Posted May 28, 2023, 2:34 PM
jmecklenborg jmecklenborg is offline
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What accounts were your referring to?
Hers.
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