Home News Landlord snapping up Lauderdale’s single-family homes

Landlord snapping up Lauderdale’s single-family homes

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Joe Taylor, who has lived for many years, loves the city of Lauderdale and has become one of the largest landlords in the last six years.

Meanwhile, Taylor built two duplexes and 25 single-family homes, which have since been converted into rental properties in this settlement adjacent to Minneapolis and St. Paul.

Taylor’s spending sounded some alarms among the city’s 2,600 residents and city officials. In the already tight housing market, the loss of so many homeownership opportunities for young families by Taylor and other potential investors is afraid to change the character of their city forever.

“Roaderdale is a great place to live. Our homes are some of the most affordable on the subway,” said city administrator Heather Butkowski. “Currently, all of this naturally occurring, affordable homes are scooped up and often rented for affordable rent.”

Taylor defends his purchase and states that he has already invested in his community, which is more than half the renters, counting 500 apartments in town.

“I aimed to get a property that needed repairs and attention, which would add value to everyone,” he said. “It helps change the face of the community.”

National trend

According to 2022, Lauderdale’s dynamics are rolled out nationwide. report From the Harvard Housing Research Joint Center.

According to the report, investors bought 28% of single-family homes sold in the first quarter of 2022. This was an increase from 19% in the previous year, with an average of 16% in 2017-2019.

In Twin CitiesIn areas from Minneapolis to the suburbs such as Fridley and Hopkins, corporate ownership has increased dramatically. Database Developed by the Federal Reserve Bank of Minneapolis.

Business consultant Zak Knudson and his partner live near several rental homes in Taylor. He said owners who spent their time and energy on their homes would be disappointed to see some rental properties that lacked general maintenance through tenants that never settled in the neighborhood.

“It’s a rental property issue. It’s a dollar box. There isn’t much incentive to improve the property,” said Craig Zubaknick, a retired contractor who moved to Lauderdale in 1984 and raised his family there. “Rather, it’s” how can you increase your profit margin with as little investment as possible? “It’s frustrating.”

Reverend Dave Greenland, a longtime resident of Lauderdale, said Taylor’s buying was leaving a sour taste in his mouth. Greenlund, a minister of Peace Lutheran Church in St. Paul, recently said he lost $ 2,000 on a property that another buyer hurriedly turned into a rental property. Greenlund wanted to be smaller in the town.

Currently, Greenland is concerned that investors will continue to buy affordable homes, and it is safer and more advantageous to park their wealth in the quiet, tree-lined Twin Cities area rather than on the fierce Wall Street. I think.

“The problem is, Taylor says this is a very nice neighborhood, but what is a neighborhood? It’s relationships and people,” Greenland said. “I think he likes the neighborhood. He doesn’t see any problems with what he’s doing.”

Ms. Mary Garsh, Mayor of Lauderdale, has heard concerns and is investing part of the county’s new homes and redevelopment taxes to offer first-time homebuyers in the future a successful offer in Lauderdale. He said he was discussing helping with his community partners.

“We are deeply committed to maintaining naturally occurring, affordable homes,” she said.

Investing in the community

Taylor, who manages the rental real estate business full-time, is open to what he is doing.

Taylor bought a home in Lauderdale around 2000 and made the community his home. After the collapse of the house in 2007, he began investing heavily in renting single-family homes, buying and repairing homes in the East Side of St. Paul, South St. Paul and Minneapolis.

About five years ago, Taylor sold these properties and aggressively entered the Lauderdale housing market, he said. As a licensed realtor, he has a good understanding of the local market and he says he inspects real estate himself. There is no doubt that he has an advantage over his first-time homebuyer, he said.

“I haven’t lost much. My offer is generous,” he said, often bidding on other investors.

Despite criticism, Taylor said he felt he had a good relationship with city leaders and neighbors and wanted to maintain it. He does not foresee a wave of new acquisitions.

“I don’t want to offend the inhabitants,” he said. “I’m not going to buy the whole town.”

Taylor said the community benefits from his local practical management. He said he lived within two minutes of all his properties, responded immediately to tenant concerns and often repaired himself.

“He completely exceeded my expectations of what the landlord would be,” said Shauna Hendery, 22, a renter who moved from New York to attend the University of Minnesota Veterinary School. “I love being in a very nice neighborhood. I feel like I’m at home. That makes me want to stay here.”

Alexia Lythos and her sister rent a small, tidy one-story house from Taylor. A 24-year-old student at the University of Minnesota and a veteran of the U.S. Marine Corps, Litos said the house was vacant before Taylor converted to a two-bed, two-bus rental with new equipment and dark teal accents. The wall that the sisters turned into a gallery of original artwork, which they said was used for storage. They pay a monthly rent of $ 1,600.

Neighbors have stopped her, praised her for refurbishment, and even asked her to take a peek, according to Litos.

“It’s a very safe and quiet suburban neighborhood,” she said. “I like it.”

Garon Houston originally rented a duplex from Taylor in St. Paul, but now rents one of Taylor’s homes in Lauderdale for $ 1,500 per month. 60-year-old Houston lives two doors below Taylor’s home and can walk to work as a cashier at a local gas station. He calls his rented house a “blessing.”

“I can’t find a better guy around. He was great,” Houston said of Taylor.

Houston said he understands his neighbor’s concerns about things changing — he was once a homeowner.

“If I could own it, I would buy it with a heartbeat,” he said.

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