I am looking at a rehab deal where 2 houses can be picked up for the cost of back taxes (~25k combined). The downside is that both houses have been vacant for at least 6 years (and possibly up to 10 years), and need substantial work (roof, foundation, and potentially to the studs remodeling). Both houses are roughly 1500 sf and have ARVs of approx $125k.
My rough PNL estimate on these houses are 25k each, but I am concerned on what I will find once inside. Just curious what some other rehabers have experienced in long time vacant houses and how far gone a house needs to be before you write it off as not worth the trouble.
Your rehab estimate is $25k? From what your telling me I would think each house needs $120k.
Depends. If significant water damage then I'd say you're probably going to have serious structural issues with the floor joists and sub flooring (wood framed houses up in the northeast). But if the roof was solid (I once purchased a house that was vacant for 10 years but had a strong slate roof attached) then it might not be bad at all. A little mold here and there. I'd have a thorough inspection done by a qualified and licensed inspector. And possibly from a structural engineer as well.
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