Any Tips On Opportunities In Affordable Housing Development From The Experienced?
Well I cant say I'm really a "Beginner", however I guess every day presents new opps and new beginnings...
And besides I'm not sure what other forum to post this in.
I'm in S.Florida to start. Specialize in rehabs and doing quite well. But I am always looking for other investment opps.
Currently the is VERY little if any land left for new construction in Broward and S. Palm Bch Counties, and this trend is moving N. very quickly.
Less than 20% of the homes in the market for sale are less than 250K. Appreciation in many areas is easily 25-30% for "holders". So this will not slow. Props in this price range disappear in less than a week, and 1000's are still moving here.
Now some developers seem to be working and some struggling with city governments and land owners to absorb the leased lands of MH parks and the like as a last resort, to convert them to Condos or tracts of Townhouses.
There are literally thousands of people on the waiting lists for Section 8 props, 1000's that are being displaced by condo conversions (from apts) and also MH owners that bought for 20-40K and are forced to leave their MH due to evictions. With no place to take those rolling aluminum boxes, they will likely be abandoned.
The question is what housing solutions are available for these people that can only afford maybe 100K with special financing programs, in a 200K low end market.
Obviously land costs and availabiliy are the primary factor here.
Trying to think creatively. Remember I'm a rehabber. Currently looking at rezonings and double lots, etc.
Should I fight for some preconstruction deals at some point ?../(I think bigger than that) and just forget about the plight of these individuals.
COME ON LUFOS !!!! Some thoughts please!
SG
Not sure whre in Broward and S palm you are but there is still lots of land in those areas.
I have been researching similar projects. In am a gc and have been looking at doing affordable housing in areas where counties overlap. I have spoken informally to some county planning offices and they seem amenable.
linlin,
As you can see below my user name Coconut Creek....
Yes there is land available at the right price (to the seller) Most are not willing to build anything less than 160K Townhomes or 225-250K homes preconstruction prices from what I can see, and that's again, on the very low end. And usually gone in 1 day.
What do you feel as a GC is "affrordable" housing based on the local market since you are close by????
SG
Giovani,
You might post this in the Development forum on the Commercial side of TCI. (Red tab at top of page).
Mark
The prime "affordable housing" programs these days are the Low Income Housing Tax Credit and a variety of programs to either subsidize land acquistion or construction costs. As a rule these programs are run out of your state Department of Housing (in Illinois the Illinois Housing Development Authority-- IHDA pronounced "Ida"
I am not familiar with the Florida counterpart but let me ask around a little.
I have some plans I am having done. I am hoping to be able to sell starting price at $140K for SFH and $110K for duplex
I have been trying to reach the state regarding the low income housing projects but right now they are really tied up. I got a letter back saying they would contact me around mid January to again discuss the matter.
I found one area recenty that I was really interested in. I started buying lots and next thing I knew the lot prices skyrocketed. I learned from that and from now on I plan to aquire the lots either in a land trust or as an individual first to maybe hide my tracks better.
How far do you think based on your observations, folks would be willing to drive for more affordable housing? The new areas I am starting to look at are about 50-70 miles from Ft Lauderdale
CommercialKing,
Thank you so much for your response.
I recognize you as a significant contributor to the site and I will be in touch with you!
Linlin,
Ahhhhh so we do basically agree on the current conditions in our area.
Listen, my original question what not to express a any sympathy or tearful concern for these poor souls that cant afford to pay cable much less a new MH in another park, or simply buy a 150K condo rather than renting for the next ten years.
However, In some instances we make alot of money for doing something that we really enjoy. And just as I feel about my rehabs, we are doing something to better communities.As we feed well from that, I do feel that we have a responsibilty to do what we can to help solve crisis in the community.
Especially if it brings us new opps with big profits!!
I feel this will be a major crisis in a couple of years in S.Fl. and I would prefer to get started now.....everything worthwhile takes time.
I had bought rehabbed and sold SFH's in PSL already and I really cant afford to travel there anymore with the margins that are currently available. Everything that was bought around 80-100 that I
sold for 140-150 earlier in the year is now 175-200. Some peopleare working on very slim margins now.
I really dont think that most people want to drive more than an hour to work. PSL is 85 miles from S. Palm Beach Co. and 1 1/2 hours. So my opinion is that something has to be done between Hobe Sound area (no one lives there that I know of) and south to releive the pressure on the market for affordable housing in the near future.
Either that or there will be even more families living 8-15 people in a 2-3 bedroom SF...and renting at that.
Thanks,
Steve