[Mpls] Accessory Houses: A reality check

[Dennis Plante]

One of the basic tenets of the free-enterprise system is "something is worth 
what someone else is willing to pay for it".  The rental market (especially 
in North Minneapolis) is in a state of "shake-out" right now, very much 
unlike the conditions in the mid-90's when you could still purchase a home 
(in North Minneapolis) directly from HUD for $40k and rent-it-out almost 
immedately for $800-$900 month.  Investors very rarely work with their own 
money.  Instead they are able to convince lenders (banks) that the solvency 
of their proporsal passes muster.  Banks typically don't "speculate" when 
making these type of decisions.  Don't take my word for it.  Go approach a 
bank and ask them to partnership in participating on a "speculatve" property 
with you.  I don't know of many "investors" that have bailed-out off the 
stock market and are looking for tax shelters currently.  I know of 
investors that are looking for better (than the stock market) investment 
opportunities.

I am also somewhat confused about Dyna's statements (if I read them 
correctly), as it was not too terribly long ago that she was voicing the 
concern that housing values were LAGGING in north Minneapolis.  Maybe the 
old adage "be carefull of what you ask for, as it may come true", is 
appropriate?

Adding additional capacity to an already unhealthy rental market (vacany 
rate) will be of little or not benefit to anyone.  If anything, current 
sales trends in inner-city neighborhoods like north Minneapolis, indicate 
that the neighborhoods WILL BECOME MORE VIBRANT and healthy, as the sale 
prices continue to climb.

Zoning regulations are in-place (and much more stringently so) in urban 
areas than they are in rural areas for a VERY good reason.  It's called 
livability.  I DO NOT want my neighbors (that live 12 feet away from me) to 
be able to "convert" their unfinished upstairs w/o first having to go 
through a regulated process that determines the impact it will have on my 
livability.

It is a somewhat different situaton in rural areas where you live 
underconditions that are much more "buffered".


dennis plante
lind-bohanon