Houston - Crappy House on an expensive street - Need Some Help

[Mark M.]

Greetings to all,

Its been a while since I've posted or really even been on BP, I've been dealing with my full time work and taking care of family but i havent stopped pursuing real estate.

I recently got several calls and wanted to talk about one in particular today.

Its a small ugly house right next to nice, big, beautiful houses. You know the old adage, buy the worse house in the best neighborhood... 

The price for this house is in the 400k range and to be honest there is no way this house is worth that much, but the lot might be. Other houses on the same block are selling for 1-1.5 million. Now those million dollar houses are all new builds, but i did find a comp very similar to my house but in nicer condition for roughly in the 650k range. 

I would imagine that this properties saving grace is its location. I would also imagine the smartest (but hardest and most time consuming) move would be to knock it down and build a brand new house. Seeing as how little experience i have in this field I would say doing that would be way out of my league and should be pursued by a much more experienced investor and/or developer.

I really think this has potential to be a good a deal but I need some guidance and direction on which way i should go or who i should even be dealing with on this.

If anyone could give me some ideas as to the best way to approach this I would highly appreciate it.

Thanks for any input, I look forward to chatting with you guys and gals about this.

Until then, stay blessed.