Yet another house on Julian St. Same story as all the others, it’s amazing. Bought for 40k in late 90′s. Sold a year or so later for a 100% profit, then a foreclosure. Bought for 40k again, sold for a 100% profit, then sold again and again basically every year up until 08 (where it almost hits 300k) and now the party’s over. I really wonder if this street still has a chance of survival. I did actually see contractors working on these houses which was a good sign because all four similar houses were boarded up only a few weeks ago.
Also Nearby:
Nearby Houses:
None yet photographed. Please take a picture if you see one.
Gotta like those orange steps.
I am real troubled when I see contiguous buildings going into foreclosure and reaching low values. This makes “parcel assembly” to easy and increases the likelihood that they will be demolished to make way for subsidized housing. Think of that what you will, such “projects” are not neighborhoods.
What I would like to see is small private investor/owner occupants come in and take them at low prices, this might re-establish a “neighborhood”. I think that modern building codes might drive the costs out of the realm of reasonableness. To make them really attractive deals to an owner occupant, renovation costs would have to be held to about $80,000. That might be quite difficult in anything more than a “patch and paint” renovation. An owner with time, skilled friends and resources could do it. Unfortunately, most financing terms reduce the time available, the use of unlicensed/uninsured friends and “sweat equity”. Still the possibility is there.
Most commercial transactions assume that you are borrowing enough money to pay the interest during reconstruction, I doubt that would be available to small borrowers.
If the above has appeal to anyone, here is an “angle of attack”. Dedicate any renovation money available to renovation of the rental portions of the building. Get those units done and rented so that the bank is off your back. Then use “sweat equity” and funds as available to renovate the owner’s unit. This has destroyed a few marriages.
If neighborhood values do not rise to cover your investment, in the end you may come up short. I think you would have to hold your total investment to 2000-2001 values.
Faust, I’m trying to do just that.
I’ve been in about 20 houses in the last year but I’m still yet to find the seemingly magic combination of acquisition price and renovation costs. I’ve put offers on two house but the banks didn’t budge—too easy for them to sit on neglected properties and wait for top dollar (on houses falling apart), even in that means years. And years and years and years.
There’s a couple properties that I know are foreclosed and in various states of boarding that I’d like to check out but no “owner” exists, and therefore, they’re definitely not on the market.
The next step from there is to lobby the city to seize property and turn it over, which, if you’re lucky, is a six to eight month ordeal.
You could say all those reason are a big part of the motivation behind this site. Suss out all the players and hold them accountable, so those who want to make change can.
“I’ve put offers on two house but the banks didn’t budge—too easy for them to sit on neglected properties and wait for top dollar (on houses falling apart), even in that means years. And years and years and years.”
Bide your time. I am no longer accepting calls from the President, so my ear isn’t to the ground. Still, I strongly suspect that the banks are waiting for a government program which will relieve them of all their “toxic assets”. In true government wisdom, no matter what the banks do, they will suffer criticism. They have probably elected to do nothing until the dust clears. When the spill out comes, it will be an avalanche. Still, you will need to be “wired” to get the plums.
How long? Remember New Orleans? It took the government 5 days to get water to the Superdome.
It might be wise to become “known” at the building department. A real question to my mind is how much will have to be “brought up to code”. Many times this is a judgment call. For instance, a new “street line” to bring in water may gain you nothing in terms of supply or pressure, but it costs $2-3000. In those old buildings that line is frequently a 2″ lead pipe. These are all things that have to be looked into before you make a jump.
Changing a “fuse box” to a “breaker board” is not too expensive. Moving it from the basement (where it probably is) to the unit it serves(which code would probably require) is another whole ball game.
“There’s a couple properties that I know are foreclosed and in various states of boarding that I’d like to check out but no “owner” exists, and therefore, they’re definitely not on the market.”
I spoke with a knowledgable friend today, he lives in Randolph, just south of Boston. His neighborhood has several abandonded houses with “homeless” squatting there.
The town has been after the banks. Their position is that they are only “servicing agents” and do not own the mortgages which have been sold. Consequently they do not hold title and are not prepared to do anything. They are technically correct, they are not “owners”. The owners are bondholders under various security agreements. Since the shares are transferrable and numerous, the cost of running them all down and getting an agreement to sell one house is probably larger than any benefit received by them. He noted that, today, the South Carolina Supreme Court issued an injunction against any further foreclosures. Courts will do things, even if they can’t. It will take 3 years to work its way to the U.S. Supreme Court. In between, the injunction is in effect.
I posted this elsewhere, but before making any investment in R.I., you might want to have a look at this:
http://www.economist.com/world/unitedstates/displayStory.cfm?story_id=13579343&source=hptextfeature
That is a generally unbiased British news magazine. They make the point that those few people left in Rhode Island still able to pay more taxes are leaving Rhode Island in droves. They lay it out somewhat more flatly than the Projo. Seems reasonable. I have some relatives in Rhode Island who have done rather well, they long ago switched their Domiciles to Florida.
For anyone who is interested, here is a link to the South Carolina news story:
http://www.google.com/hostednews/ap/article/ALeqM5ifXC8ff1Xuqnjj45LlzoW6qEHXxwD9809UMG0
I hope others share my sense of humor. In the Economist article linked above, one commentator pointed out that Rhode Island’s only “renewable resource” is prostitution. It is a shame that that is about all the rest of the citzenry seems to know about RI.
thank god someone is doing something about the homes left for dead in providence. keep up the good work and if i see any houses that aren’t on your site i’ll send you the pics so we together as residents of providence can help clean up our city.
Some food for thought, I wonder if anyone agrees. I notice that all reports are that Providence values are declining precipitously, except for the East Side which has seen minor declines. At first the thought of low values, combined with high repair costs, was bad news. Now I wonder if prospective purchasers of $300,000 condos might take an interest in other “walk to work” accommodations at a significantly lower price. I notice that the “Broadway Renaissance” sort of stalled with increasing prices, I wonder if lower prices might not breathe some life into those stalled projects. The rapid departure of “young singles” might continue and hamper it.
Thank you for stopping by and chiming in Gregg.
How does the sequence of urban renewal work again?
1.) Squatters
2.) Artists
3.) Carpetbaggers
4.) Yuppies
5.) Doctors/Lawyers/Politicians
With that in mind, it’s hard not to be priced out of E. Providence. Hell, I really like the Fox Point area, BUT even if the prices where more comparable to the West end there’s something about the whole East side that is a big turn off to me.
To talk to long time Rhodies you’d think anything in Providence west of 95 or south of Westminster is as bad as they think in their heads Compton, South Central LA, Harlem in the 80′s, and South side Chicago in the 90′s. It’s an insular little place, the whole East Side area being more-so.
My guess is many who choose to live on the East side like it that way.
Plus we’re talking about a lot more than pricing divisions when speaking of East vs. West side Providence. The racial segregation is pretty staggering.