Abandoned Home in Colorado - Worth it?
Hi all,
I just bought 3-unit a property in Colorado and owner-occupy one unit. I plan to add another 1-4 unit property this year. I can do basic remodeling, but not big stuff. None of my properties have needed major overhauls. As I was wandering the neighborhood, I noticed a very ugly house that wasn't kept up. It is abandoned. The floor in most places is missing and it looks like the stairs going up are gone (couldn't quite tell). The lot is huge, but the house on it is not very big. It is listed as Multi-Family with the assessor. The property records show a Public Trustee's Deed in 2008, followed a couple of months later by a Special Warranty Deed for $92,000. Properties in the neighborhood are $300-$400k.
I'm wondering if this a decent candidate to scrape and build a multi-family or nice SFR on. I've never looked into this depth of a project. What are some of the major considerations I should have in mind to determine if it is worth it? Are the lending options for a fresh build similar to buying a pre-built?
If a fresh build is a bad idea, what about renovation and expansion? If I double/triple the size of the property while keeping the old intact is that feasible?
Thanks in advance!
Bryan