Has anyone ever bought a tear down or fixer upper home?

[pete6032]

Browsing local real estate listings I will occasionally see homes that either a) don't have interior pictures and are tiny (800 sf) and are marketed as "investor opportunity" or b) have not been updated for 30+ years. These properties are sold at a significant discount but I wanted to know if anyone has bought a home like this that was either a complete tear down or gut rehab. Are either of these options feasible for a typical buyer who would hire a contractor to build a home or rehab the home or is this too much hassle and too costly? I know it depends a lot on land price but just curious if this is even an option I should consider. The homes I'm referring to are in built-out post-WWII suburbs with full utilities if that makes a difference.

 

[nakedfrog]

If you're financing, it can be tricky. I did an FHA 203k on a HUD home a few years back, contractors in my area weren't keen to bid on it, and the whole process was a pain in the ass (and required me to move into the home, which was fortunately the plan). But with the circumstances I was in, I don't regret it.

 

[jmagg]

We bought an 1951 ranch and did a complete gut and remodel. Just under 1100sf, my cost doing everything myself was approx 27000. Material cost are probably 30-40% higher today

 

[Captante]

The homes I'm referring to are in built-out post-WWII suburbs with full utilities if that makes a difference.

 

[dank69]

We bought an 1951 ranch and did a complete gut and remodel. Just under 1100sf, my cost doing everything myself was approx 27000. Material cost are probably 30-40% higher today

You talking adjusted dollars or?

 

[jmagg]

You talking adjusted dollars or?

Obama/early Trump era dollars, as compared to today.

 

[Fritzo]

My first house was a fixer-upper. It was abandoned for 2 years and we got it from a slum lord. The grass was a good 7' tall, the plumbing was rotted, and nothing worked. We lived there for 10 years and did one major project a year. The house turned out very nice after about 4 years and when we moved we ended up making 3x our investment (which funded building a new house to our exact specs). Probably best investment I ever made.

 

[SKORPI0]

I know someone who'd buy a fixer upper for cheap in ghetto areas (South Chicago), did his own fixing which took months, had it certified for occupancy and ended up making a tiny profit.
One fixed house he lives in and another given to his sister. He is in his mid 20s.