Flip or flip it into the trash?
Scenario: Asking Price $159990 for a property by seller, I'm prospective buyer
The Nightmare: Modular home built in 2003, currently owned by rental company renting for 50% the going rate of the area, property next door looks like it came out of the Swamp (peeling paint on wood siding, plastic sheeting floating in the wind over the windows, 5 lawn mowers that may or may not work at the side of the house, you get the picture), backyard faces a truck depot with a bunch of repairs behind a chain linked fence. Reminds me of Durham, NC, right as the $40k houses started to sell for $80k. The home may be tolerable by some people but this is truly substandard. I feel like the owners are lying about if they even rented it. Huge tears in the floor laminating, uneven flooring, exposed water heater, trip hazards everywhere. There's dead trees in the backyard, one's about to hit the house. A peak back shows that the current owners tried to sell it multiple times in the past without success, they originally purchased for $80k and had to put repairs in according to the listing agent.
The Dream: ALL the other houses in the area have been renovated/replaced. The school district has 8-10/10 ratings. It's HIGHLY desirable. A 2 story 3b2ba about 1800 sq built in 1948 that has been renovated will sell for 300k (pulled the comps) with a tiny little backyard and a total area of 0.2 acres. This lot is comparable.
Questions:
1) What to offer?
2) To bulldoze and tear down and rebuild or try to rehab? Rehab WILL require: privacy fencing to block out other things, foundation repair, window repair/reseal, repaint, tear down of current access stair and replacement, new flooring, kitchen appliances (all), additional dry wall interior and that's just the NEED, not the Make It Pretty stuff
3) What is the most times you've offered on a property? I think the longest I've gone on with a seller is 6 months with 4 offers and we finally settled. No one wanted her house, it was vacant for 3 years, I bought it and turned it while it was rented partly and sold it in under a week with new style and deco for a positive cash flow. It was a perfect structurally sound house that just needed a little updating.