Tip of the Month - June 2009
Source: How to Make Money in Real Estate-3rd Edition
McMichael-Moser (4th printing)
conditions will sometimes arise through the mere running down of an old
residence district to which no new construction has come because of the
absence of vacant lots. It simply “wears out”.
Meanwhile, those who inhabit these old districts fail to pay enough
rent to permit a Landlord to expend more than the amount required to
keep roofs watertight and the plumbing in good order. This is a
wasting-away process, for houses wear out just as automobiles and
personal apparel do.
Finally, a neglected district will reach a state where
it does not seem worthwhile to spend any more money on it, and there is
no demand at the moment for the use of the land for other purposes.
Even if there comes a call for the use of an
industrial or business development, the land is held under so many
ownerships that it often becomes almost impossible to negotiate
purchases at anything like fair prices. This, then, becomes a
slum and an economic sore on community life.
If an Investor is not thoroughly familiar with all of
the neighboring influences that exist in any given territory, he should
move cautiously at this point, circling the district several times,
studying the types of residents, their buying power, the condition of
their dwellings and ascertain, if possible, whether the section is
subjected to blight already or seems likely to succumb to it shortly.
Tip from Crossett Real Estate Services:
It is easy to “save” a property, however, it is more difficult to “save” a neighborhood.
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This web page was updated on 05/27/2009.