Is this worth persuing...?

9 Replies

A new construction near me (in Florida) has beenforeclosed on. I'm not sure of the exact building phase it is in... but foundation, structure, roof are all in place. See below...

I plan to go and investigate further tomorrow.

I was wondering if anybody could give me an idea of costs (ball park) in order to get it finished, in order to see if this is worth persuing.

By the way, I am aware this is a very vaguequestion and amongst other items... permits / architect drawings would need to be submitted.

It's about 2,200 sq ft and finishes would be mid grade. There's no driveway (2 car approx. 30 feet to road.

Thanks in advance!

It's impossible to tell from the picture what the costs might be to finish it. A lot will depend on how far they got with the plumbing and electrical, what was already permitted and inspected, and what was just abandoned.

You will certainly need a GC to deal with the permitting and inspections.

It could easily be $50k to $100k or more, depending on what has been done, what hasn't been done, and what has to be re-done.

That being said, a friend gave me some excellent advice about estimating rehab costs once that I've never forgotten: "Add up exactly what you think it's going to cost, then double it!".

Good luck. It actually looks like a fun project to take on, and new construction sells for a premium in this market. 

I would make a visit to the building department and request the drawings on the project.  They won't give them to you but they will let you photograph them.  It will give you the architects name and all the details of what was permitted.  You can get the name of the builder from the Architect and speak with him as well as to pricing to finish the project.  Many things to consider but I'm sure the plans were submitted and inspections made to dry the house in already.  They can also tell you what needs to be done depending on the time it has been sitting empty.  good luck!

I would absolutely entertain a project like this. 

Often builders will run out of capital to finish and "abandon". This give you the option to pick it up at a discounted rate where the #'s make sense. I'd dig around for a local investor who has experience with these. You're going to want to check the quality of what they've already done. If they were running out of cash they could have cut corners on vital areas. 

Update...

Went to view property and all the whole structure is in place. Framing is in place throughout... a/c duct work is also in place, however no handling unit or condenser. All rough plumbing and drainage is also in place. Internal windows and sliding doors are all in however, pretty much all of them have been smashed through. No electrical done.

Builder went bankrupt and property is in the hands of some acquisitions co.

Comps in the area are about $270k

I've not looked gone to county building department yet.

Go to the town building department. There's a good chance they are familiar with the house and can give you some advice. At least get a feel if they will be willing to work with you, or against you.

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