There was an interesting story in the Orlando Sentinel yesterday about how the City of Orlando will be using $6.7 million of federal grant money to buy, fix up, and re-sell approximately 20 houses and hold 11 others as low-income rentals. This grant money was divvied up in the same law that raised the FHA buyer contribution to 3.5% and killed Nehemiah down payment assistance.
Doing some quick math means that they will be paying approximately $216,000 per house. Considering that the median price in Orlando is $180,000 as of October 2008, it sounds like they are targeting the fancier neighborhoods as opposed to the working class areas. Of course maybe the city is simply doing what government is good at ... overpaying for things. Who knows?
It does seem pretty interesting that the city is getting into the real estate investing business. I hope the city doesn't end up getting stuck with 31 vacant eyesores like so many other Central Florida investors have done.
Orange County is planning on buying 28 homes with their share of grant money. Considering there are approximately 15,000 homes for sale in Orange County and probably 1/3 of them are in foreclosure in some way, this home buying venture seems like a very minor effort in the scheme of things. Kind of like a band-aid on a gunshot wound. I guess the government has to make it look like they are doing something productive.
Well they have to spend your tax money on something now don't they? Hopefully at least this will generate 31 + 28 commissions for area Realtors(R). I wonder if Mayor Dyer knows how to get a short sale approved?
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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.
ABR, CPL, CRB, CSP, GRI, Managing real estate broker, Licensed mortgage broker, Notary Public
407-389-7318 / 1-877-389-7318 www.SDRhouses.com/ We Buy Houses Florida
We sell foreclosures, short sales, and bank owned REO properties throughout Central Florida. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available.
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