The Observation Deck

David Anderson wrote:I do not agree that there is an oversupply of housing units in Lakewood. I do believe, however, that there is an oversupply of poorly maintained houses/properties in Lakewood.

David

As always your are the wise one on this!

It is a downward cycle that needs to be addressed right now. As the property value falls
it brings in more absentee landlords to buy and just make a dollar. A triple last week that
once sold for $137,000 went for $79,000. The new owner said I might paint and rent to
whoever. So there goes the housing stock and now?

At the same time we have many regional groups that are using Lakewood to stash all
sorts of good people that need and deserve a place to live but will never contribute to the
taxbase of Lakewood and will therefore take away from Lakewood and the system. In the
end these regional groups could sink the Lakewood boat. hmmmmmmmmm?

The right course of action is to rebuild the housing stock and make it worth more money.

You and I have both been talking about "Landlord School" for years. Since we were
neighbors. We both with very high quality rentals. We both realized that the difference
between a good landlord and a bad landlord was the quality of the product, and the effort to
keep that property at the top of the price list. I believe that both of us would be quite
happy living in our rental properties. Actually my wife would love us to move into our
rental she likes it better than our house as it has central air, refinished floors, etc.

The mantra concocted by the VAL was Safe, Clean, Fun. The city should stop worrying
about funding the fun, and concentrate of safe(streets) and clean(streets/housing). Then
the only thing that could add to Lakewood would be real access to the lake. Which could
be either the peninsula, or making Clifton Beach a public park through the eminent
domain that LakewoodAlive assured me is a needed tool to make Lakewood better for all.
(Better do this before they make north of the WSL a gated community)

.

I appreciate the compliment, Jim. I am definitely not always right in my opinion but believe many other feel just as exercised about this issue.

The individual(s) who bought that triple for $79,000 will have a monthly note of around $350 (30-year mortgage) if they put down 20%. Add taxes, insurance and water and they are looking at a total monthly bill of $750.

If the units are nice they can be rented for $350, $650, $650 on the western half of Lakewood. If they need updated and can’t fetch the high rent they’re looking at $300, $550 and $550. So, what incentives can be used to get the new owner to update the units (bathroom, kitchen, windows, efficient HVAC) and attract premium rent and keeping the tide high for all of us - rental property and primary residence owners alike as most of Lakewood's streets have both mixed together?

The new owners are going to make $700/month (without repairs) as opposed to $950/month which would require a more heavy investment.

Most homeowners know that a failure to invest in unit upgrades - putting money back into the house - every so often will end up hurting the owner in the long run because the units will get more and more outdated fetching less and less rent. Eventually, that $700/month profit will dwindle to $500 then $400, etc. Then the deferred repairs start coming to call. And, if the new owner is using the $700 "profit" to pay their own mortgage then there's the possibility of two houses being in jeopardy.

This might be the trap that caught the previous owner if you are referring the house I’m thinking of.

I’m going to PM you in a minute.

David

Yep

The fact is this is where the city could do much better. As could any group that claims
to want to move the city forward. Housing stock, is the key. Especially in a bedroom
community like Lakewood. 50% of the city is rental, that means our single largest business
is renting, homes and stores. Let them devalue and you will cripple the city.

This feeds directly into my two mantras. "Clean, Safe, Fun. Let the residents handle the fun."
And "Are we frosting a cake that is not baked, or even worse going stale and moldy."

This weekend is one of Lakewood's premiere events, actually a string of them. Arts Festival
and Starry Night. This falls on the heels of the 4th of July, and next up is the Car Kulture
Show. All of these events bring in hundreds of thousands of people to the city. And if you
notice, all appeal to very different crowds. This is a goldmine a chance to not just make
money from the city but to showcase the city.

Instead of partying, we should all be pulling weeds, painting homes, cleaning up downtown, (I did notice street sweepers doing the full length of Detroit, a nice start) but
really making the homes, especially around the ways in GORGEOUS!

For those that seem to forget, we have 1,000 more things to offer than Tremont, and an
average home with no view is going for about $275,000. You can almost buy on the lake
for that amount here! People need to drive in and through Lakewood saying "Damn, I
would love to live here." NOT "Damn I would like to shop here."

This is one thing that has impressed me about Monique Smith. She is the only candidate
talking about housing stock, and how important it is to this city.

Each and every landowner, and landlord needs to kick it up a couple notches. Those that
say it is too expensive need to listen to people like you and I. We have been more than
lucky finding good tenants. Of all colors I might add. Because they are quality rental
properties.

Last year I was walking through a section of Lakewood and saw homes "cheaper than
section 8." This does not even make sense to me unless you are busting up blocks.
Which maybe the regional developers are doing.

Lakewood has got to get it together, and I am not sure binge drinking is the answer.

FWIW

I like the thought of viewing rental properties as individual businesses, Jim. This is what Lakewood does. Imagine the loss of tax income if Lakewood had 10, 20, 30 percent fewer rental units?

Unfortunately, I think many in Lakewood dispair over the the fact that our city offers a 50/50 split between single family houses and rental properties. It's some sort of inferiority complex.

All Lakewood rental properties (including those owned by landlords who go the Section 8 route) should be the highest quality in the region.