The township across the lake from me is an old vacation community with 1-2br year round bungalow homes that are prime for second story additions to make them 3-4br. If the numbers appear right, does anyone think this type of "flipping" would be profitable? Opinions welcome-have a good one!
May be a profit waiting to happen it the numbers work. Do a cost approach analysis to determine your margin. Is there someone who has done that already and how did they do? Check out the current sales in the area for that size of a dwelling. An appraiser will base his/her opinion on the sale of properties in the area, comparible to the subject property within the last 6 to 9 months. Also how long are they staying on the market?
Thanx for the reply. I'd say it's been done to about half of the township, so it certainly wouldn't be the odd ball out. I'm just trying to figure out if it would be too expensive to be profitable; will have to run some serious numbers to decide. Thanx again.
We have several neighborhoods in the Houston area that are being re-vitalized. Since you say that half of the township has been renovated, I would be alittle more cautious. I'm not sure about your area.....but in the Houston area, residents of an area experiencing regrowth tend to try and sell their older properties at the going rate of new construction. Working with a good appraiser will usually keep you safe.
Just be careful and not over build in the area. Sounds profitable but if you are just starting out, I would start with a few smaller projects first to understand all the costs involved. (materials, labor, permits etc.)
I'm interested in a master bedroom/bath addition to a stone ranch I'm buying. I read an article that two guys in Atlanta did a fabulous addition off the back of the house (added 840 sq. ft.) and they published the cost at $125 a square foot. That seems high for subing yourself.
Two stories are good in our area in the pricey pricey neighborhoods with no neighborhood caps to deal with. One realtor I know did a two story and sold it at the highest price per square foot ever in that area. It got the whole street moving and that was four years ago. They're still remodeling those homes over there. He had to change contractors in the middle of the construction though. Took alot of risk in being the first. Master on the first floor would have been better on his house, I think.
Just remember, going out on a ranch is more expensive than going up with a second level; you must build a foundation to go out, but not up.