Would you invest in a shell of a home?

3 Replies

Would you, as an Investor, purchase or be interested in a vacant home that has been almost completely stripped inside, or that is a near (or complete) tear down?

That is, of course, if the numbers worked. Also, to follow up that question, would you expect a higher profit range for such a larger project? This home has a (roughly estimated) ARV of $500k. Selling for about $300k. It honestly does not look like a complete tear down from the pictures posted, but there are no internal pics so I cannot tell the state of repair it is in.

Regardless of its state, I'm still curious if many, or if any, investors are interested in such a larger project and if they expect greater rewards from it.

You don't give us much to work on here, no SF or quality of location, etc. If we were looking at this kind of a deal and assuming it would need permits, we'd be looking for a minimum $100k profit after all expenses, carry costs, etc. that means, you'd need to buy it for $250k or less. If it is a tear down, you'd be looking at the plot value less the cost of demolition less a margin if you wanted to wholesale. Our 2c worth which is 2% of a dollar!

Good luck with it.

when I buy my long term stuff I prefer them this way but we do our own rehabs (and we actually pull permits)

Originally posted by @David T. :

You don't give us much to work on here, no SF or quality of location, etc. If we were looking at this kind of a deal and assuming it would need permits, we'd be looking for a minimum $100k profit after all expenses, carry costs, etc. that means, you'd need to buy it for $250k or less. If it is a tear down, you'd be looking at the plot value less the cost of demolition less a margin if you wanted to wholesale. Our 2c worth which is 2% of a dollar!

Good luck with it.

I'm sorry, Dave. I only did some brief research on that particular home I found before posting. It's an abandoned home and I couldn't find a single listing for it online or on county records. I have the correct address - even google maps could find it, so I'm still trying to find more about the property myself. I was just curious if investors are interested in a tear down, and you've given me that answer, thank you. $100k profit for a teardown/rebuild. I'm still very new to all of this so I wouldn't even know where to begin for a property like this. I'm not even that sure how to find the average price for a plot of land (of that size) in that area. There is still much learning and research to be done.

Thank you very much for your input.

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