Small Houses - Worth Bothering With?
I have a property listing that looks like a good deal, although haven't been in it yet. It is only 649 sq. ft., 2 bed/1 bath though. My thinking is even if it was rehabbed nicely, it is so small that it would only appeal to a small subset of buyers, thereby increasing holding time. What do you think?
Generally you want 3/2 homes that appeal to the bread and butter buyers.
If your in a hot market this might not be a bad deal for a retiree.
CHeck sales on past listngs that were in that size range and see wht they sold for and how long they took.
Frequently these have high holding costs because they don't move fast.
Sometimes however if the market ios real good and there is enough land an additon can turn things around. Figure $100 sf for an addition that is simple.
[addsig]
I totally agree with Pro. however,
2 br's make good rentals. Single people love the extra space.
If it's cheap enough, you might check out that ave.
Yeah, that's pretty much what I was thinking. Thanks for your input everybody.
I would rather have a 2br house than a condo best if rehabed.
Iv'e done a few of those the market was good for resale. They are cheap to buy hold and rehab.
It all depends on where the house is located. We bought a 50 year old 2 X1 (a total junk) in a very hot area, and converting it into 3 X 2. It is costing us $30,000, but after the rehab is completed, it will be valued $170,000, and we only paid $90,000 for it.
The house is sitting in a double lot as well. So we can do a lot for this property. If this house was in a low income area, we never would have thought about expanding it. I would have just spent about $10,000 to make it look nice and functional. Like I said earlier, it all depends on where the property is located.
The current seller may have thought along your same lines and now has to sell low to the next unwitting "investor". Just do your due diligence and make sure that the prop can move. What was it Barnum & Bailey used to say..?
iglooman