Is Your City Or Community In The PATH of PROGRESS Or CONDEMNATION?

Is Your City Or Community

 

In The

 

PATH of PROGRESS Or CONDEMNATION?

 

 

 

This post was inspired by a question I answered on Bigger Pocketsanother RE social media platform I contribute to. It was about the acquisition of an old half empty or half full (depending on how you interpret your glass of ice cold brew) Mobilehome Community in Florida. 

 

Not all Mobile/Manufactured Home Communities are bad investments. In fact most are actually very good investments with great cash flow, NOI, ROI and CR and there's plenty of gazillionaires around that would be more than happy to brag about their "TRAILER TREASURES" if you afforded them the time.

 

So please take a few moments to indulge me if you wish.

 

Having been beckoned In 2004 to Florida by a FEMA contractor in the aftermath of Hurricane Charley and his 3 pals, whence they ravaged a good part of the State, I had first hand experience with a number of Mobile/Manufactured Home Communities in particular that had become the victims of condemnation and a product of imminent domain issues that so often result after major disasters be they natural, man made or both.

 

Upon arriving with crews, tools, equipment and supplies at hand I was immediately commissioned to demolish several Mobile/Manufactured Home Communities that were  partially if not totally destroyed.

 

In one instance I cleared and cleaned a condemned Senior Mobile/Manufactured Home Community on the Caloosahatchee River in fort Meyers that was rezoned and redevelopoed in the blink of an eye only to be replaced with a hi end high rise condo-hotel; HIGHER & BETTER USE in its purest form leaving hundreds of former homeowners in a panic to find replacement housing if they were ever so fortunate.

 

The major factor dictating the fate of not just Manufactured Home Communities but entire cities is whether that community is in the PATH of PROGRESS or in a blighted and declining area that populations are avoiding and/or leaving.

This is a phenomenon that seems to be happening throughout the Country in many areas. Just take Flint, Michigan for example. I call them dead zones.

In some areas entire towns and communities have been reduced to ghost towns. What's becoming even more pervasive is every so often an entire town pops up for sale; jail, bank, post office, grocery stores and even the town cemetery come with the deal. 

 

Areas around old worn out and/or abandoned industrial, agricultural and/or popular tourist vacation destinations and even residential communities that have seen their day and are starting to turn to rubble and deteriorate have become prime targets for abandonment in lieu of gentrification and redevelopment.

 

I remember all to well with great fondness and many wonderful memories one place in particular I used to spend many vacations as a young water skier and boating enthusiast in the 60's and 70's. It had a huge lake filled with delicious Corvina, myriad assortments of sea life, fishing boats, ski boats, shore lined marinas, restaurants, hotels, upscale waterfront residences with private docks, mobilehome parks et. all. It was truly one of the most favorite vacation destinations in SoCal.

 

When the lake became flooded by record breaking rainy seasons of biblical proportions in the '70's all while the farmers in and around Imperial Valley continued dumping their chemical laden irrigation wastes combined with the salt water level mixed with the chemicals intensified until it killed off all the sea life and slowly ate away at paint, metal, wood or anything else in its way.

 

Thus the Great Salton Sea became an abandoned and ravaged ghost town.

 

It remains today a not so safe haven for motorcycle gangs, drug traffickers, fugitives, illegals, recluses and just about any/all anti-social undesirables that choose to eek out an existence to try to survive there. 

 

The message here is not to discourage anyone from exploring highly speculative inexpensive or low cost buying opportunities. Fortunately these exceptions are by no means the rule. They are only meant to inform you that if it sounds too good to be true it most generally is.

 

Just remember that age ole adage "One Man's Trash Could very well be Be Another Man's Treasure." Whether or not some of these areas ever rebound or old worn out neighborhoods ever gentrify and reinvent themselves is an ongoing question.

 

 

So before you separate yourself from your hard earned cash on something that sounds too good to be true the best thing you can do is to pay a personal visit the local jurisdictions, and thoroughly evaluate their

 

 

  • population trends
  • past and present employment/unemployment statistics
  • income or lack thereof
  • number of social security, Medicare, Medicaid and entitlement recipients, etc. vs. productive work force
  • average age of past and present population
  • past and present attrition rate
  • condidtion and existance of community amenities
  • features & attractions, etc.

 

This will give you a general sense of what direction the area in currently in or could be heading in.

 

 

And don't always judge everything by what it looks like today either. Yes, there are many cities and communities that look on the verge of failure and are very run down and neglected.

 

However, they could be just starting on the road to rejuvenation and replenishment. There could be new trade and commerce about to embark. A new manufacturing hub may be  on the horizon in the near future, etc. Once again it's all about DUE DILIGENCE. DUE DILIGENCE & MORE

DUE DILIGENCE.

Why To Choose Us?

John DL Arenden, Broker 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.

 

 

 

 

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Comment balloon 19 commentsJohn DL Arendsen • May 28 2017 11:24PM

Comments

Where I live, mobile homes do not fall under the Real Estate umbrella. The land they sit on sure, just not the structure.

Posted by Matthew O'Hare (Foreclosure Prevention Advocates) 27 days ago

Not sure this is exclusive to mobilehomes Matthew O'Hare Could be any community anytime on any given day.

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 27 days ago

OK, so I give up Bob Stewart ! I've been horsing around with this post a good part of he day and you can see what it still looks like. What on Earth am I doing wrong. I have edited and updated at least a half a dozen times and I'm still getting all kinds of glitches in it. Oh well, I'm in Cabo and it't time to toss back a Cazadores! Adios Y buenos noches!

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 27 days ago

A lot of very interesting ideas to chew on in this post, John, and I suspect there are as many opinions as there are options as to which way the wind will blow for a number of communities...at least in the near future.  As for the future beyond that, who knows?  

Posted by Susan Haughton, Susan & Mindy Team...Honesty. Integrity. Results. (Long and Foster REALTORS (703) 470-4545) 27 days ago

Ain't that a fact Susan Haughton 

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 27 days ago

Hope you're enjoying your time in Cabo, John!

There are several formerly 'scary' neighborhoods in our area that are now labeled as 'up-and-coming' and truly booming. The vast majority of our area is skating along with huge growth, great job opportunities and a very healthy economy in general.

Funny but, when I saw the title of this post, I immediately thought of Detroit. It will bounce back - it may take time but, it's bound to!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 27 days ago

This topic is a good one to cover, John!  And, it is a subject not often seen talked about!

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 27 days ago

CONGRATULATIONS John, on having this blog FEATURED in the Old Farts Club group!    

 

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 27 days ago

Thank you once again for awarding me a feature on your wonderful platform Myrl Jeffcoat Sometimes it pays to be an "Old Fart"!

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 27 days ago

SO many points to ponder. First off my area suffered through a major blight during the early 1990's when recession hit. Our downtown was empty. Big retailers, employers and mom and pop stores all packed up and left town or went out of business. With vision our town re-vitalized and rebuilt to an incredible and lively down town packed with employers, shops and restaurants and people. Our mill yard, a leader in textiles went Baron when they moved over seas in the blink of an eye. Through planning our millyard has transformed into a leading technological super center, colleges, universities and Dean Kamen, inventor of the segway and many other medical devices lead the way. 

 

It is said to look at who runs the city and that dictates if they are in decline or growth

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) 27 days ago

I totally agree with your last comment. However, there are also some natural and man made ramifications that directly impact the fate of a communty that isn't always a direct result of leadership.

Should an earthquake, flood, fire, hurrican, tornado, etc. ravage an area there's very little local leadership can to to prevent that from happening Scott Godzyk However, failing to see the changes in technology, AI, Education, et. al. is in fact a direct responsibility for government.

This happens all too often. Just take a look at all the companies that left America because our governmental reg and restrictions, lack of adequate and proper training and just plain apathy or worse yet indifference to the needs of their community. 

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 27 days ago

You're spot on about that Debe Maxwell, CRS We're even seeing that trend starting to happen in some of our downtown San Diego burroughs i.e. North Park, Normal Heights, Hillcrest and even Downtown San Diego. But that's a given considering San Diego is one of the most desirable places in America to live. 

It's so many other areas in Cali I'm worried about. Cities like Watts, East LA, outlying areas like Barstow, Baker, etc that are getting old, worn out and natural attrition that isn't or won't re populate for one reason or another.

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 27 days ago

Yes, jobs, economic strength and solid infrastructure are at the core of revitalization - someone (or group) just has to take on the challenge (and it's no cake-walk either). 

When I moved to Charlotte, almost 40 years ago, I was afraid to drive through our downtown after dark - it was a scary, run-down, high-crime area. About 20 years ago, someone had the vision, gathered more passionate individuals and spearheaded downtown's revitalization. Downtown has even been re-named, "Uptown" and it's now considered THE place to reside!

That effort ignited putting our entire city on the map!  Areas surrounding the Uptown began revitalization (some are still in-the-works) and because of the massive effort, The Great Recession was not as impactful on our area as many others. 

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 27 days ago

   City of Tallahassee is both.  The south side is in serious decline (a major chain supermarket and a Walgreen's both announced this week that they are shuttering).   North side of Tallahassee is booming... both residential and commercial. 

  Here at Shell Point on the coast, it is virtually impossible to build anything commercial (FEMA, flood plain, insurance, etc).   With not one single restaurant, marina, store, or anything here (the nearest convenience store is 7 miles away) it will remain stagnant... and that is fine with me.

Posted by Fred Griffin, Licensed Florida Real Estate Broker (Frederick Griffin, Exclusive Buyer's Broker) 27 days ago

Great words of wisdom on really investigating what I would call "downtrodden" areas before dumping money into real estate there.

Posted by Chris Ann Cleland, Associate Broker, Northern VA (Long and Foster REALTORS®, Gainesville, VA) 27 days ago

I know lots of folks who have lost their ars investing in RE just because it was cheap. If it's cheap there's usually a pretty good reason for it Chris Ann Cleland and it usually doesn't transelate to a sound investment.

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 27 days ago

Hi John,
Excellent post.  Sadly, tragedies have been used to displace low income residents with the "higher and best" use approach.  It is unfortunate for those residents as they scramble to find affordable housing in their hometowns.   We are a small but progressive city.  Unfortunately, we also lack for affordable housing.  It is always a subject for discussion among the city leaders and, yet, no-one takes the lead to improve the situation.  No-one wants it in their neighborhood and that's not where the money is for developers. 

Posted by Carol Williams, "Customized Mentoring & Marketing Services" (U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business.) 24 days ago

You nailed it Carol Williams We're running into the same situation in Cali. The State Housing and Community Development Department comes out this past January with Senate Bill 1069 and Assembly Bills 2299 & 2406 which eases up on the restrictions for building ADU's on residential lots and most of the local jurisdictions are falling and flailing all over themselves trying to figure out how to best deal with all the NIMBIES that are resisting it. It seems like everyone wants what they have and won't give an inch for anybody else. Go figure.

Posted by John DL Arendsen, TAG Real Estate Sales & Investments Coastal Living (TAG Real Estate Sales & Investments, ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Developer) 23 days ago

Good morning Thomas J. Nelson, Realtor, CRS ,

I'm so glad that Carol Williams featured this in her Saturday Second Chance series. Very insighful post. It is unfortunate for low income residents to be displaced due to mother natures storms. "Highest and best use" is always on the table. We are having issues in our downtown areas that are now considered "Uptown". Prices are skyrocketing because of the location thus pushing many lower income residents out because they can't pay the property taxes. Any City growing because of job creation is undergoing the same..the complexion of the cities are changing.

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) 22 days ago

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