How far gone is too far gone?
For me nothing is too far gone. Call me optimistic but coming from a construction family I tend to see the potential in every home. The only time I get nervous is major fire damage. It just seems like there can be in detected issues that might pop up late in the project. Major fire damage is too far gone for me. Tear down and rebuild to get a predictable finished project would make me more comfortable.
I like the ones nobody wants to touch. True it always takes longer and costs more than expected. My opinion is that almost any home can be brought back to a glory filled life and generally at a better value than rebuilding.
take a look at the pictures below. This is a 1964 single wide mobile home with a couple of framed in poaches on 1/3 acre. It looks bad. The roof needs a little repair and the entire thing needs to be redone. However, since it is in CA there are a lot of hoops to jump through to remove it and build on the lot. There is water power and sewer.
Being a buy and hold guy the potential rent will cover the repairs in 1 year and in 5 years would pay for a replacement or in 10 years pay for a new traditional construction home. The increased rent on a new home would take 20-30 years to pay off.
Would you update and rent, remove and replace/rebuild or run away and take a long hot shower.
