How much to restore a gutted house?

Question

I found two homes completely gutted (no plumbing and no electric) but has walls with fresh paint and no structral damage or termite damage. The owner is selling both for 150k. I'm really intrested by this would be my first investment purchase. The community is poor now but the city has already started in the the total renovation of the area. It's gotten a 20% rise in property value in just one year! How much do you think it will cost to renovated both homes???

They are 2br-1ba shot gun homes

Answer 1

Can't really tell from your description -- is all the plumbing gone, including the lines in from the street, or is the 'rough' still in place? Is the wiring for electricity in place, or do the houses have to be re-wired from scratch? Do the houses have heating and/or air con units? Before I made the purchase, I'd get estimates from both plumbers and electricians, and from a building contractor if you can find one who will do an estimate for you. You also need to know how much the houses would sell for/rent for once they are restored; 2bed 1bath shotguns are charming, but don't sell for much in most areas.

Answer 2

Personally I think $150,000 for 2 small gutted homes is wayyyyy to much for them. You're going to put at least $30,000 into each of them before you can turn them.....look for something cheaper. Your rental market would not be able to support your needed payment and expenses each month. Until the economy is actually supporting higher end rents this is a crap shoot.

Answer 3

Very roughly $50 per square foot. You can probably bring in a local contractor and get a better estimate.

Answer 4

Depends on what you want to be done and how much are you or can do yourself.

If you can do it, you should. It's good to one property/real estate.