okdiluted t1_j9d9q0u wrote on February 21, 2023 at 1:57 AM

coming in on the flip side of this—if you're buying a vacant, gutted place for ~$10k and have the budget for renovation, why not rehab it? a lot of row homes are on the market already in the $150-$200k range, you get to rehab a building and do some architectural preservation while also making a home that's customized to your taste, and your neighbors benefit by not having a vacant next door anymore. like, of course it's a big undertaking, of course there can be unexpected costs, but in the end the estimates are coming in around the price of a move-in-ready home. if you like a project and like the location, why not?

neutronicus t1_j9eytlo wrote on February 21, 2023 at 1:04 PM

Well you gotta budget rent for the 6 months to a year or more the work is happening

But I assume the biggest issue is that banks don’t see it your way and you can’t get the same loan for a rehab you can for a move-in ready property. Which makes it a nonstarter for most homebuyers in this area

DoNotWeepAtMyGrave t1_j9g37ki wrote on February 21, 2023 at 5:50 PM

The problem for most of these is the location. You invest $100k and now own a property no one wants to live in. The ones in good locations sell for $50k, with much higher renovation costs. At that point, unless you’re an investor with a crew, it’s cheaper to buy an existing structure or a brand new build.