YOUNGSTOWN, Ohio – Todd Larsen, owner of Larsen Remodeling in Boardman and a landlord on the South Side, is an optimist.
He bid $9,700 to acquire three neighboring parcels in varying states of disrepair in the 3600 block of South Avenue Monday and hopes to rehabilitate the buildings and rent them out in six months.
“I own three houses within walking distance,” he said afterward as auctioneer Chris Roman of George Roman Auctioneers Ltd., completed the paperwork that should give him title in two weeks. “I look upon it as a good investment.”
Larsen hopes to convert one of the buildings into a daycare center and suggested that another might become a beauty parlor. “I have a tenant who lives on Hilton [Avenue],” he explained, “and she wants to open a beauty shop. This might be a beauty shop in six months,” he said of the former law offices of Fred Rafidi and Chantal Jackson.
That two-story building with a dark red brick façade and made of cinder block, 3627 South Ave., was the cleanest of the three by far. On one wall hung a larger-than-life portrait of Bill Clinton when he was president.
“All they’re doing is tearing buildings down,” Larsen said of efforts by the city of Youngstown to reclaim sections of the city where blight is rampant.
Of the building that housed the law offices, “This is the only one habitable,” he allowed, and estimated he will spend $30,000 on materials to restore the buildings before anyone would consider moving in and another “$48,000 to $50,000 in time and labor” to clean up and repair the buildings vacant at least five years, he said.
The middle building, with vinyl siding, was filled with debris, empty beer cans, sporting goods and sports memorabilia – including a Youngstown State University football poster autographed by former head coach Jim Tressel – left by the former tenants.
The last, a two-story brick residence at 3635 South Avenue, was in the worst shape, windows on the second floor left open. Those considering bidding on the parcels thought it prudent not to go upstairs and the first floor did not inspire confidence.
The parcels are zoned B-2 or general business, Roman pointed out, and also noted the excellent condition of the asphalt pavement that covered what once were lawns.
Only five people showed up to bid including a father and son who competed with Larsen. Roman started the bidding at $50,000 to silence.
“$40,000,” he asked to be met by silence and stares.
“$30,000.” No reaction. $20,000.”
“$2,000,” Larsen countered. Roman refused to take the offer seriously.
$10,000,” the auctioneer asked. “There’s that much in the paving and fence.”
$5,000,” Larsen said.
$6,000,” the father countered.
$7,000.”
$8,000.”
$9,000,” Larsen bid.
“9,500.”
$9,700.”
Roman tried to elicit $10,000. “You’ll be making money in less than a year,” he asserted. The assessed value is $57,000, he continued, trying to coax a five-figure bid. He could not.
Roman conferred with the father briefly, informing him of upcoming auctions before meeting Larsen to complete the paperwork as the remodeler presented a check for $1,000 as a down payment.
Larsen, who came to this area “12 years ago with $4,000 in my pocket,” sees a bright future here, he said, and intends to play a role in the recovery of the region. He set up his business in Boardman eight years ago, he said, and has been reclaiming and remodeling residences since.
Roman declined to identify the owners of the properties who hired him to conduct the auction except to say they formed a real estate investment entity.
Larsen wondered aloud whether his bid would cover any liens, back taxes and any unpaid water bills. He will take possession of the parcels with any liens, taxes and utility bills paid by the sellers.
Copyright 2012 The Business Journal, Youngstown, Ohio.