Differences in Rehabbing a $150k House vs a $250k House
So, I've been looking for a house to flip in my area and I've been purposely looking around the $150k ARV price range. Surprisingly, the biggest problem I've run into is funding. It's not that people don't want to lend, but when you're talking to hard/private money people about buying something under $100k, for the most part, they're uninterested. However, if I look at spending over $150k, suddenly all these doors open.
My reasoning for choosing such a low price point to begin with was for security. If all else failed, I knew that at the end of the day, I could buy the property for myself. I did not expect to run into this problem - the property is too cheap to fund!? So now, I'm looking at more expensive properties and I've noticed that other than quality, there's really no major differences. The square-footage is the same, a lot of the amenities are the same. The biggest differences are the neighborhoods, where they're located and the age of the home. In many cases, the material used for the flooring, cabinets, counter-tops, tiles, paint and all that... it's all the same stuff! You're not paying much more, just because it's a nicer house, so a lot of that value has to do with those other features, mainly the location!
My question to those more experienced - what am I missing? Have you found this to typically be the case? Am I wrong to assume that a simple rehab on a $150k house with 1500sqft isn't going to cost much more, or be much more work, than a $250k house with 1500sqft?