Can they make money on this house?
September 10, 2012 11:42 AM Subscribe
Please explain how they're going to make any money on this rehabbed house.
posted by Thorzdad to home & garden (22 answers total) 2 users marked this as a favorite
There's a house across the street from me that has sat empty for almost three years now. From what we can determine, the owners just walked-away from it one day.
Finally, beginning around the end of spring this year, a continual procession of contractors and subs have descended upon the house. Once summer came, work really got serious on the place.
Among the obvious work done so-far...
• New roof (tear-off)
• New windows throughout (Anderson vinyl-clad double-hung)
• Tear-off old wood siding, replace with insulated vinyl siding
• New guttering
• Dig a new well (we're all on wells here)
• Gut kitchen
• Break-up and bury in-place large, concrete in-ground pool in backyard!!!
Judging from the debris in the dumpster, they very well may have gutted much more than just the kitchen. The dumpster in on its third fill. There's been a lot of carpentry going on over there.
Still to come, I expect, will be all the finishing work...paint, carpets, kitchen appliances, etc. I have no idea if there was any damage from standing empty over the course of at least two winters (water damage form pipes, etc) There was some broken-out siding and soffiting, which could have allowed water or critter entry, so who knows?
The house itself is approx 2000 sq.ft., single-story, 3-4 bedroom, 2-bath home, built in the mid-70's. Earlier this spring (before all the work started) the house was briefly listed for-sale by some entity that seemed to specialize in repo'ed homes. Before their sign disappeared from the yard, the price had been lowered to about $70,000. For some perspective, my next-door neighbor sold his house (roughly the same size) this summer for $124,000...and his place is impeccably maintained. Move-in ready.
So, I'm trying to work-out in my head how anyone is going to make any money on this house, given 1.) the amount of work going into it, and 2.) The going prices for similar homes in this area. Unless the title-holder has decided to take a bath on the place just to get it off their hands, I can't make the numbers work. It's certainly been fascinating to watch, though.
Can any MeFites with experience in these deals shed some helpful light on this for me? What are the economics of this?