Buying a 2 bed 1 bath no basement, needs gutted

2 Replies

My niece is selling me her house for $11,000. The issue is it needs gutted , It has water damaged where plumbing line burst and house was vacant at the time. I am estimating it might cost $20,000 to fix. I was planning on renting it out after it was fixed for $550. 2 bed homes are going for around $35,000 to $40,000 in that area. Is this something worth pursuing?

Originally posted by @Dave Neeley :

My niece is selling me her house for $11,000. The issue is it needs gutted , It has water damaged where plumbing line burst and house was vacant at the time. I am estimating it might cost $20,000 to fix. I was planning on renting it out after it was fixed for $550. 2 bed homes are going for around $35,000 to $40,000 in that area. Is this something worth pursuing?

 Rent numbers work...I just have no idea how you plan to completely gut a home for only $20,000. Granted maybe Ohio is just that much cheaper than Wilmington, Delaware...and/or you're planning to do all the work yourself and just have material expenses...but if you've never done the rehab before I would seriously question that $20k number. 

I plan on tearing out the drywall. I have a semi retired electrician that will do a complete re-wire on the house for $3100.  An Amish guy that will do the drywall fairly cheap. The plumbing I might hire out. I can do plumbing with the help of my step dad.