I am a small passive investor in working-class apartment communities, Class B and C. This is affordable housing with rents ranging from $750 to $1,400. A syndicator pools our funds, buys a run-down apartment community and rehabs it, creating good, clean, safe, affordable housing for working-class families. Our motto is “Best Product, Best Price.”
Our syndicators work closely with honest residents, helping them to find local rent subsidies, deferring rent payments, and otherwise working with them in this time of crisis. But there are residents whose evictions have nothing to do with COVID-19, and we must be allowed to evict them.
It is critically important that government officials, politicians and religious leaders rushing to create eviction moratoriums understand the challenges our syndicators face and why evictions are sometimes necessary. Our syndicators provide monthly reports and financials. Here is a tale told by one such syndicator in his monthly reports and the challenges he faced during a recent month. We meet and know most of our syndicators before we invest with them. They are friends as much as business partners.
One of my investments is in a small apartment community in a small city. When it was originally built decades ago, this 24-unit community was considered a nice place. As it passed through several owners, the place degenerated, earning the reputation as the last place that would accept residents before they were forced to live in their trucks. The untrained former maintenance man, who made inappropriate comments to female residents, was incredibly creative in making things work, not making repairs. He just made problems go away.
Years prior to our purchasing this apartment community, the family in Unit 214, a two-bedroom, two-bath unit, allowed their daughter’s boyfriend to live with them, in violation of the lease. After numerous domestic incidents, often