Quote:
Originally Posted by the urban politician
^ A fully rehabbed old property (when done correctly) doesn't just get $20k of updates, I mean it can cost hundreds of thousands of dollars with lots of pain and lots of sweat.
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A number of these homes have renovation permits that are quoting estimated costs of $75K+. A lot of these homes are not huge (though a few are 2000+ sq ft). Where are you getting your information from that they're only spending $20K on renovations of these homes?
An example is
this home which sold in October 2020 for $53K for renovations. It has a permit issued in late November 2020 quoting an estimated cost of $85K for its renovation. In no way am I saying that's some master renovation at all, but it's still a little better than $20K.
Or
this home, which sold in August 2019 for $85K. In mid March 2021, it was issued a permit to renovate to the estimated cost of $224,960.
The last one makes sense. it's essentially a shell. Not all of these places are shells or even bombed out. For example
this house which sold for about 29% over its asking price. It's not a shell and it's not exactly bombed out either. I don't think you're going to get some high quality hardwood flooring everywhere in a renovation of this house, but these places on average are having renovations that are still a bit over just $20K.