Military · Pensacola, FL · Member since 2014 · 53 posts · 63 votes
As the title states, I see these homes all over the place, as I live in an older town that had a strong military build-up during the WWII period (Pensacola, FL). They typically have brick or asbestos facades, pier foundations (crawl space), tiny kitchens, small closets, and wood-burning fireplaces. Some have been upgraded to central air over the years. Many are in decent, safe neighborhoods.
Besides the usual updating, repairs, etc, there are also potential issues relating to antiquated wiring, lead paint, asbestos and others I'm sure. When you come accross these homes, what strategies typically work for you? Light rehab & rent? Full Gut & Flip? They're so old and out-of touch with what today's buyers are looking for...but there has to be some way to monetize...right? (I've got my own opinions, but I'll hold those until later in the post)
FYI, depending on area, most of these retail in the $80-90k range. REO's can be found in the $40's, and I've seen distressed ones go in the $20-30 range...esentially the value of the land itself.
Investor / Wholesaler · Nashville, TN · Member since 2014 · 1k+ posts · 667 votes
12y
Tim, I think most answers will be depends on the numbers. Plug them in and see what gets spit out, does the rental rate and DOM in the area justify fixing and renting? How long do houses in the area sit on the market that are for sale at those prices? I don't have a great answer for you but hopefully someone with more experience in the flipping world will come along this weekend and help you out with some more details. At $20-30k I certainly think it could justify a rehab and flip or rent. I look forward to getting down there next year to learn the market more. Then I will have a better answer for you.