Another investment in the Wick Park neighborhood

[AllanY2525]

Ron,

Here are some things I would add, "If I knew then what I know now....."

1) Banks in the area don't want to lend any significant money to fix up residential
properties in the older neighborhoods like Wick Park in Youngstown.  You have to
come out of pocket for most things, in most cases. EVEN if your credit is excellent.

2) Never buy an older home that has been off the electrical grid so long that it is
disconnected out at the utility pole.  Once this happens, the entire electrical
system must be inspected and passed by the city to get the power back on.

Most of the time the inspector will tell you the entire house needs re-wiring
to get power on again.  I went though this with the house on Woodbine - but
I had already planned to rewire and bring it up to current code since the house
was a total gut and rehab project.


3)  I had the water department replace the main shutoff valve at the curb
because it was sunk into the ground and water pressure was almost
non-existant.  I also had the water line replaced all the way into the
house from the curb.

4) If you plan on using a single family home ( of the old, LARGE variety)
as apartments, find a property that was already divided up and listed as
multiple units on auditors' website - that way you won't have to jump
through hoops with building department, etc as it will already be
"grand fathered" as such.

Check and see if the utilities are already separated for each living unit for
houses that have been divided into apartments.

5) If you will be doing most of the work yourself, have a building inspector
be especially thorough when inspecting for flaws and deficiencies that you
cannot legally repair yourself without a contractor. 

Repairs to load bearing elements of the structure
Electrical wiring
Gas lines

6) Be very, VERY specific with the language in ANY job order with a contractor
who will be working for you.  Types of materials, allowable cost over-runs,
completion date,  scope of work to be done, etc.

[Youngstownshrimp]

Allan,
You were investing in Youngstown way back then.  What can you ad to this thread as far as what you have learned in buying up Youngstown property?

[AllanY2525]

I don't know about the market for "flipping" houses,  but it seems to me that the
key to running successful rental properties in Youngstown is to pick the area
where you buy very, VERY carefully.

Basically, anything within a several block radiaus around Y.S.U. should be a
pretty sound investment.  Students love living NEAR, but not ON, campus
and being able to walk to school from their apartments, etc.

[northside lurker]

Thanks Leah,

There are a couple "rent to own" signs in my neighborhood.  They don't seem to be too successful, though.  The signs have been there for months--some going on to a year!

[Leah]

Allan- Congratulations on your new purchase.  Best of luck with that.

Westsider- There are people in Youngstown who make money flipping houses, but many times they sell them "rent to own" or with a seller held second mortgage.  A lot of these people sell their homes to people who cannot secure financing on their own, so they charge a higher price.  Kind of like buying a car from JD Byrider.  If you did the same thing, only didn't charge a ridiculously high price, you'd probably earn yourself a good reputation and do well.  That's just the tip of the iceberg.  There are many factors to consider when getting into real estate investing, as I'm sure you're aware.  Best of luck, whatever you decide to do.

[AllanY2525]

No,  I do not intend to "flip" this property.  You are correct in that the resale
prices for existing homes in Youngstown is VERY low compared to other
markets around the country.

The home will be used as a rental property for college students - this is the
only way to generate enough rental income so that the property can be
maintained once it is fixed and brought up to code.  Although the house is
structurally sound, it will still need about $20,000 worth of repairs and
upgrades to make it what it should be inside.  I am going to put in a
brand new kitchen and two and a half brand new bathrooms, new heating
system, upgraded electrical system, etc.

[northside lurker]

Sorry, I'm new here.  But, do you "flip" theses houses?  If you do, does it work out financially for you?

I ask, because I would love to get into that type of work, but assumed that it wouldn't work well in a market like Youngstown's.

In any event, I'm always happy to hear that an old home will be fixed up instead of torn down.

[AllanY2525]

Folks,

I have just put a contract on another property in the Wick Park neighborhood.
The new acquisition is a single family home, built in 1900 and in remarkably
good condition considering it is 106 years old. 

I should be going to settlement within the next ten days, after which my crew
and I will go to work on the place immediately and get the yard and the grounds
around the place cleaned up.

Unlike the apartment building, getting this home up to code and totally finished
inside will not be a long term project - we should have the place finished by the
middle september or so.

Regards,

Allan