The Crap Starts Hitting the Fan

I witnessed what I feel is maybe the first piece of truly visible, close-to-home crap hitting the giant real estate fan. I went to both my buildings today, and saw that a 6 unit building two doors down is now boarded up. This was a pro board-up with a steel door and steel boards, a product I have never seen before. There was a shut-off notice from the water company for $790, about a single 2 month bill in my estimation.

So what happened? Well I assume that this building is in foreclosure, and the only thing that surprises me is the speed with which it happened. I saw this building turnover twice I think in the not quite fours years I have owned on the block. Each time it came up for sale, I looked into buying that building as well as the one right next door, but each time the price was too high so I didn't bother bidding or looking. It seems to me whoever bought it, obviously paid too much, bought at the top, and ran out of money. Ha ha!

I say “Ha ha” because people have been buying at ridiculous prices for years, so it was inevitable that this would happen. If it was a cold winter, we'd probably see more foreclosures. Meanwhile, on this short block, in a neighborhood that is both up and coming and has seen a dozen or so murders in 2006, there are three buildings going condo. The most expensive is asking $365,000+ per unit, I believe they have parking, but I haven't seen the units. Four doors down is asking $219,000 for what I believe is a four room railroad, no parking. Five doors down is asking around the same for similar units. At a recent open house, they were asking $159,000 for the same unit partially gutted, but unfinished. Seems like they are running out of money and panicking. I'm hoping to own most of the block sooner or later. I hope the market cooperates. I can hardly contain my glee...Bwahahahahahahahahaha!