fre_d_dy t1_j9davhm wrote
Reply to comment by CaptainObvious110 in How much would it cost and what is the process to rehab a totally vacant home? by k032
In theory, in areas where ARVs approach/exceed $150k it starts to be worthwhile to fix them up for resale. That’s while you’ll sometimes see developers redoing an entire block of vacant houses.
Xanny t1_j9fez6b wrote
The average sale price of a house with modern amenities on my street is like 200-225k but there are still vacants. I think the problem is those are 2 story and the ones that sell are 3, so I guess adding a third floor is cost prohibitive?
fre_d_dy t1_j9fhc80 wrote
The vacants could be remaining vacant for a bunch of reasons. They could be owned by a speculator type, who bought the house with no intention to fix it and is just timing the market. They could be in bad enough shape due to structural issues that even at a $200k selling price it’s not worth it to fix and flip.
The houses being 2 story just means they wouldn’t sell for as much. I expect adding a third floor would be very expense and not worth it from a ROI standpoint.
The 150k number I mentioned earlier, is location/size specific. It seemed to be the price point around me when a lot of 3bd, 2 story houses started getting fixed up.
CaptainObvious110 t1_j9dh15l wrote
That addressed was posted doesn't seem like one of those areas
fre_d_dy t1_j9erxd2 wrote
It is not. A couple blocks closer to the park maybe are into that $150k range
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