Would you invest in a shell of a home?

Question

Would you, as an Investor, purchase or be interested in a vacant home that has been almost completely stripped inside, or that is a near (or complete) tear down?

That is, of course, if the numbers worked. Also, to follow up that question, would you expect a higher profit range for such a larger project? This home has a (roughly estimated) ARV of $500k. Selling for about $300k. It honestly does not look like a complete tear down from the pictures posted, but there are no internal pics so I cannot tell the state of repair it is in.

Regardless of its state, I'm still curious if many, or if any, investors are interested in such a larger project and if they expect greater rewards from it.

Nastassja S. · Answer

I'm sorry, Dave. I only did some brief research on that particular home I found before posting. It's an abandoned home and I couldn't find a single listing for it online or on county records. I have the correct address - even google maps could find it, so I'm still trying to find more about the property myself. I was just curious if investors are interested in a tear down, and you've given me that answer, thank you. $100k profit for a teardown/rebuild. I'm still very new to all of this so I wouldn't even know where to begin for a property like this. I'm not even that sure how to find the average price for a plot of land (of that size) in that area. There is still much learning and research to be done.Thank you very much for your input.

Jeremy Tillotson · Answer

when I buy my long term stuff I prefer them this way but we do our own rehabs (and we actually pull permits)

David T. · Answer

You don't give us much to work on here, no SF or quality of location, etc. If we were looking at this kind of a deal and assuming it would need permits, we'd be looking for a minimum $100k profit after all expenses, carry costs, etc. that means, you'd need to buy it for $250k or less. If it is a tear down, you'd be looking at the plot value less the cost of demolition less a margin if you wanted to wholesale. Our 2c worth which is 2% of a dollar!

Good luck with it.