Posted by Mark (SDCA) on November 03, 2008 at 08:24:53:
In Reply to: VERY management intensive.... posted by Michael Morrongiello on November 02, 2008 at 14:10:52:
I couldnt agree more. To me, these are properties that would "appear" to pencil out great but reality will not match perception due to repairs, turnover, collections etc.
As for appreciation, many people are buying them with the expectation of ZERO appreciation.. ever. And if the cash flow on paper worked out, that would be ok.
To me.. this was the most interesting part of your post: "are not even reposessing some properties preferring to leave them to the municipalities who have onerous code violation charges,etc"
Out here cities are indeed taking lenders to task on property maintenace but OFC that is AFTER foreclosure (and the properties out here are still valued in teh 100s of thousands). If the lender NEVER forecloses then the city is stuck looking for the owner who is long gone and probably has nothing to go after anyway. Talk about a losing proposition for the city. I guess they eventually take it back for liens/taxes and try to sell it.
Great post,
Mark
- Detroit is a gold mine for some... SoCalGal 08:50:48 11/25/08 (0)