Anybody buy homes is poor locations and move them?

Question

In my town, there is a huge price difference in areas. property values can be 30K on one street and 1/4 mile away be 250K. Not completely comparable, but you get the point.

Has anyone bought older homes in the rough areas of town and moved them to a nicer area of town and rehabbed them? Seems that there would be serious profit potential. I know moving a home is expensive. I just sent an email to a local home mover to get a general price, but I'm sure he'll tell me it all depends... From what I've seen, its 10-30K and on up to move all things considered.

There are these 50-70's build homes in my town that nobody wants due to poor location. (There is a package deal right now: 20K for 2. haha!)  but if they were moved 2 miles and rehabbed, they could be 100K homes or more.

My town has been on a roll lately demolishing some abandoned homes in these areas as well. Could probably get them for free if I paid to have them moved.

Just wanted to see if anyone has been through this and if they would tell me to run away or to consider it.

Joel Owens · Answer

I have never done it  but I watched a show for years where they moved houses.

The pricing depended on a ton of factors. How tall and wide the house is makes a difference and how much support it needs underneath to move in the first place.

If you have to go across old bridges with weight limits, around a bunch of tight curves, low power lines and traffic lights that have to be lifted, street trees you have to work around etc.

Distance and what time of day due to congestion house would need to be moved.

10k to 30k sounds very light to me on moving costs. Usually it is much more than that.

Cameron Price · Answer

Not a ton of lots on the market, but the ones that are range from 10-30K. From a strictly numbers game, I could get all my prices and add it up to see whats left, but I wanted to see if anybody here has gone through the process. Might be more red tape and unknowns than it's worth.

From a numbers perspective, 10K home, 25K lot, 20K rehab, 15K? moving cost...  70K invested. 100K ARV... seems like 30K is left if I flipped it with those numbers. I'd take that. Lots of guessing going on there, but a decent guess to give an idea.

Basically tying to see if I could capitalize on location, location, location!

Thomas Quinn · Answer

How much do lots cost in the more expensive area you will probably find when you add up all the expenses that its not worth it