Are properties like this too far gone to consider viable for flipping. I know of several areas across my state that are growing rapidly on the residential side and little houses like this are now surrounded by large upscale neighborhoods...some better then this house in the pic but still pretty bad...I obviously have no experience flipping...but I've wholesaled 2 properties...that where pretty turnkey though...I've got a person who said they would sell a house like this to me..."just make me an offer, he says"...old family place they where gonna just let fall to the ground scenario...
Something like that is worth land value - demo costs. In my area its usually <$0
Only if the location is good. That house is a tear down.
I demo that house down. What's the zoning on the land? Can you sub divide or build more than one house?
I figured as much on the demo...I guess that would explain why there are quite a few places like that around...funny how the neighborhoods just grow around them...
I agree, a tear-down from the looks of it.
In my area, there are some restrictions on knocking down old homes, and it can be a real headache to work through it. Make sure you look into details like that before you pull the trigger.
Check to see if there is something underground that may need to be removed, such as an old oil tank. Also be aware of any chemical hazards, such as the remnants of a meth lab or leaking oil/chemicals in the soil.
@Bradley Bladon and anyone really, How much are placed like this going for? What is the location like? How many of these places and how close are all of them? I'm thinking big with this, perhaps (and of course I don't know) you could find a way to work with the town and banks to purchase all of these tear down houses and "renovate the community" work with local companies and the local governing bodies to build the city, and neighborhood back to a viable and more importantly desirable area. Say you were able to buy a cul-de-sac's worth of these areas for under 100k and turn it around after demo and resell to the town to build a rec park, or combine them and sell the land to build a strip mall, condo complex, etc. Let me know what people think about this and what else is involved, it could take years but what is your ROI and opportunity cost through just the connections you will meet could be huge!
Best of luck!!
I often wonder, with homes like this.. do "flippers" who buy properties like this go pre-fab houses or build from scratch? One of the things I'm exploring is how to buy run-down properties in Bronx, NY and replace with pre-fab one.. don't know how common this is
How do people decide when a property is worth renovating or tearing down? I baught a property where a very old stone house burned down and a wood house was built in the 50's I think. It's been trashed by a family and it's a total mess. Some floors are crooked. Basement floods but the location is a small town near Kingston Ontario (real estate ticking along slowely) but it's on a lovely river in a small town. Not sure which way to go.
That home is for sure a tear down and only worth land value less the demo cost. IF all the neighboringbproperties are developed and the street is nice, this is the eye sore of the neighborhood and at the right price, could be a good spec build project. I don't know your market to know if that play for s good, but generally speaking, that would be the play.
Sometimes you can 'donate' the structure to the local fire department and they'll do controlled burn. Might save a few bucks on demo costs.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.