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Originally Posted by biggus diggus
Three of those houses are 800 square feet and the others are between 1000 and 1200. A creative architect could turn them all into modernized livable houses but there's a risk with doing flips like that. A really nice 1400 square foot 3 bedroom house at that location could probably bring something in the $500K range, not sure what purchase and rehab costs they might need but with construction costs around $300/ft the margins get pretty tight pretty quickly. Living space is about $200/ft minimum but kitchens and bathrooms are closer to $400. If I add a nice bathroom and a 200 square foot bedroom I'll have to spend $80,000 in expansion costs on the larger homes, much more on the 800 square foot homes. Add in real estate commissions, landscaping, repairs to the existing structure, HVAC, electrical and plumbing upgrades, and incidentals and this gets to be a huge bite right as all the economic leaders are signaling an impending recession. The risk might be worth taking on one or two of them, but not all seven.
More often than not children who inherit rental property view it as an inconvenience and a scary situation their parents put them in. I'm not surprised they don't want to own them and I'm not surprised they will sell to the highest bidder.
It will be a shame to lose more historic housing but the reality is everything in that block is already medical use and Banner would probably love to have the land for expansion.
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I realize this post is a bit old but based on my experience, these numbers are way off.
Historic homes can be completely rehabbed for $50/sf or so. This includes a complete cosmetic overhaul and repair/replacement of most, but probably not all of the major mechanical systems. Obviously, if the home is smaller, the price per foot will go up a bit given some of the systems are fixed in cost.
Additions can be done anywhere from 90$ - $150/ft, depending on the level of design and finish. Spending $150/ft on an addition is going to get you a pretty bitchin' house.
This isn't to say every home in Coronado is going to pencil out as a flip - but there is certainly money to be had at the right price and I personally feel it's better to keep what few historic homes Phoenix has if it all possible.