Help! Potential Redevelopment/Rehab Opportunity in Minnesota.

[Matt Lennander]

Hey All,

So I was out for a run the other day when I passed a house FSBO that I've passed probably more then a dozen times but finally decided to call. It's an estate sale, and the seller was very short with me on the phone but here's the info he sent me:

Estate sale - House + lot with potential to be subdivided (could profit from subdividing and selling the land)

Looks like a single family home, I'd guess 2-3 beds/1-2 bath. 

1.33 Acres (57, 935 Sq Ft)

Asking $250k

The "county listed it at $238k"

Conventional financing only.

Description on flyer: "beautiful lot with large trees, quiet neighborhood, newer larger homes in the area. House built in 1940, 1,318 sq ft living area. Detached garage. Lot size 57,935 sq ft with potential to be subdivided. House needs major rehabilitation work." 

The outside of the house does look pretty rough but the property looks well maintained. How big is a typical lot size?

I live right across the street in some apartments and the area is little to no crime, convenient access to freeways and major roads. I love my area and want to stay close. He didn't have pictures of inside the house and didn't answer any of the questions I asked, just sent the flyer. I'm totally green and haven't bought a property yet but $238k sounds really high for a house that needs major rehab even with the extra land, although it's prime area being very close to downtown. There are 1-2 newer houses right next door, other than that there aren't many new houses in the area.

Can anyone chime in here and tell me what you think it's worth based on what little info I have or what "major rehab" costs range from? I'd guess $50k on up... Maybe someone in the area would be interested in partnering/investing? I'm still learning, and would love to have a partner in a deal to show me the ropes. Thanks in advance for any insight you can provide!