Post and top two screen images by the Hawthorne Hawkman, bottom photo originally appeared on Johnny Northside.
Notorious slumlord Mahmood Khan has posted a Craigslist ad selling what is believed to be many, if not all, of his north Minneapolis properties for one lump sum...of $4.5 million.
The biggest worry that such a move causes is that at a price that seems drastically over-inflated, the next buyer will be another slumlord who is as bad or worse than Khan - assuming of course that the offer to sell is even remotely genuine. But if there is a chance to either chip away at his inventory or arrange a buyout in the same manner as the Spiros Zorbalas sale, it would seem that now is the time.
Still, who seriously expects to make $4.5 million off of a Craigslist ad? Furthermore, the sale becomes difficult to finance even for bona fide buyers on the up-and-up, since the individual market value of these structures is almost certainly nowhere near a cumulative four and a half million. The only way that amount is remotely feasible is if one goes off of an income-based approach and puts very little into upgrading the existing structures. Khan would need to be talked down significantly from this price point, if for no other reason than the end use of many of these houses should be conversion back to owner-occupancy. The new owner(s), if they are good ones instead of the next round of slumlords, would have to put serious money towards repairs, and the proceeds to make the purchases viable would have to come from resale and not continued rental use.
Rally the troops! Public, private, and non-profit! This may be a tremendous opportunity to turn around the neighborhood in one swoop.