Greedy Inbred House-Flippers

[iris lilies]

I think most of you ( cough cough bobby) do not understand what “flipping” really entails in my former neighborhood. Sometimes (often?) developers are heroes. They take a big financial risk. Renovations down to the studs is typical because at least SOME of the plumbing and wiring is 140 years old, if not all. Plaster has been applied directly onto a course of brick with no insulation. Any original windows are energy leak nightmares. Lead paint everywhere. Etc etc.

It’s not just cosmetics here that are changed.

Just yesterday we got an update from our close friend who is selling her city house “as is” because she wants a fast sale with preferably no mortgage by the buyer. The house might not pass occupancy inspection and would have some trouble qualifying for a mortgage so a cash buyer (i.e. a developer) is preferred. It has been a work in progress for 30+ years.

This is a typical house in my old neighborhood.

[happystuff]

I'm sorry... every time I see this thread title I read "Greedy Inbred House-Slippers".

[rosarugosa]

In my neighborhood, flippers buy up the stock of "starter homes" that buyers of modest means could have bought and fixed up, building some sweat equity. The flippers make the houses bigger and make a lot of visible improvements while sometimes neglecting the underlying essentials, then sell at a large profit at prices beyond the reach of those trying to gain a foothold in the housing market.

[littlebittybobby]

In my neighborhood, flippers buy up the stock of "starter homes" that buyers of modest means could have bought and fixed up, building some sweat equity. The flippers make the houses bigger and make a lot of visible improvements while sometimes neglecting the underlying essentials, then sell at a large profit at prices beyond the reach of those trying to gain a foothold in the housing market.

Good call, RR. My thoughts, exactly.

[iris lilies]

In my neighborhood, flippers buy up the stock of "starter homes" that buyers of modest means could have bought and fixed up, building some sweat equity. The flippers make the houses bigger and make a lot of visible improvements while sometimes neglecting the underlying essentials, then sell at a large profit at prices beyond the reach of those trying to gain a foothold in the housing market.

Maybe.

You may be giving too much credit to those buyers of modest means who could’ve built up the sweat equity. I am with you in that I like that Imvalue that goal.

I am not sure that Gen X and younger are willing to do that, are willing to live without everything being “updated. “ I really don’t know the market.

I just know that in the past 15 years of living in the city, I can think of one— just one young couple —who bought a house that was in need of fixing and are putting in their sweat equity. in that same time. I saw young people buying houses at many hundred thousand of dollars and wow, I don’t know where the money came from. But they were not people who are willing to do any work themselves.

In previous decades, the urban pioneers were all over my neighborhood, living in the middle of construction and doing much of the work themselves. so for the most part, my neighborhood was not good for first time buyers, although we did have some smaller units.