HumanGyroscope t1_j9d2rp1 wrote
Reply to comment by fre_d_dy in How much would it cost and what is the process to rehab a totally vacant home? by k032
Add another $10k for windows and doors. $1.3-4k for new front steps. The costs can get up into $150-170k depending on material and design choices. You can easily spend $40k just on the kitchen alone.
CaptainObvious110 t1_j9d3qbr wrote
Goodness, that sucks. No wonder people aren't buying them and fixing them up. My problem is the companies buying properties and not being forced to fix them up.
imperaman t1_j9dr4u9 wrote
This would be helped immensely by the city charging a vacancy tax on property owners. DC charges a 5% tax rate for vacant buildings, and a whopping 10% tax on blighted buildings.
Baltimore charges the exact same rate to property owners regardless of the status or condition of the building. If Baltimore adopted a similar policy to DC, it would force these loser property owners (many of them out of state) sitting on vacant blighted buildings to sell to people who are willing to do something with them.
CaptainObvious110 t1_j9dszw4 wrote
Yep.
EthanSayfo t1_j9dj0h7 wrote
Honestly, if you compare the price of what you're getting (not looking at the location for a second) to the prices for places in DC, Boston, Philly, NYC, or other 1st and 2nd-tier cities around the country? $200K all in is not really too bad at all. The same physical setup would easily be a million plus in NYC (maybe closer to 2), as a frame of reference, and that's BK or Queens or the Bronx.
Baltimore punches above its weight in many ways, in terms of what you get access to. You're in the NE sprawl, one of the most vibrant economic hubs on the planet. You're a cheap MARC ride to DC, and on the Amtrak NE corridor. You're on 95. Baltimore metro region is not small in the scheme of things, plenty of local opportunities.
Is a $200K investment in a small home in a pretty significant metro area a better option than in some other places, from an economic perspective? Absolutely, in some circumstances, IMHO. Just know what your schools are like if you have kids, and add private school to the bill if you don't want to tolerate what may be a really challenging learning environment in the public system.
SewerRanger t1_j9f36j6 wrote
> You're in the NE sprawl, one of the most vibrant economic hubs on the planet
The mid-atlantic region of the US (from DC -> NY) has a GDP of 5.2 trillion making it the third largest economy in the world. 200K to live in one of the richest parts of the entire world sounds like a great deal to me.
fre_d_dy t1_j9davhm wrote
In theory, in areas where ARVs approach/exceed $150k it starts to be worthwhile to fix them up for resale. That’s while you’ll sometimes see developers redoing an entire block of vacant houses.
Xanny t1_j9fez6b wrote
The average sale price of a house with modern amenities on my street is like 200-225k but there are still vacants. I think the problem is those are 2 story and the ones that sell are 3, so I guess adding a third floor is cost prohibitive?
fre_d_dy t1_j9fhc80 wrote
The vacants could be remaining vacant for a bunch of reasons. They could be owned by a speculator type, who bought the house with no intention to fix it and is just timing the market. They could be in bad enough shape due to structural issues that even at a $200k selling price it’s not worth it to fix and flip.
The houses being 2 story just means they wouldn’t sell for as much. I expect adding a third floor would be very expense and not worth it from a ROI standpoint.
The 150k number I mentioned earlier, is location/size specific. It seemed to be the price point around me when a lot of 3bd, 2 story houses started getting fixed up.
CaptainObvious110 t1_j9dh15l wrote
That addressed was posted doesn't seem like one of those areas
fre_d_dy t1_j9erxd2 wrote
It is not. A couple blocks closer to the park maybe are into that $150k range
DecayableBrick t1_j9dl2ri wrote
People flipping houses are not installing 40k kitchens. That's either high end custom work or clueless retail clients overpaying.
HumanGyroscope t1_j9emkub wrote
True but it’s easy to spent near $25k if you are starting with a shell assuming you are doing the work legal and following code.
DecayableBrick t1_j9eyx1n wrote
That is way, way too much.
HumanGyroscope t1_j9f0gfq wrote
Not really. I did my kitchen in my old house back in 2013 for ~15.5K material only plus countertop. Appliances were $6K including a washer and dryer; cabinets were $5500 from Home Depot, cabinets were ordered but all were standard sizes nothing custom and the uppers were white and the cases were dark blue; I had someone do the countertops for $1500 and they were only laminate; 2 new encasement windows ~$600; tile floor ~$1200 included the tile saw rental; paint ~$400; sheetrock and other minor plumbing, gas line and electrical changes ~$800. If OP is doing the work it can be done under $20K, but if they need a licensed contractor labor for kitchen reno down to the studs will be around $10K.
DecayableBrick t1_j9fj3qr wrote
I am in the industry. You overpaid.
HumanGyroscope t1_j9fjrr2 wrote
Overpaid for what, exactly? I am partly in the industry as well. Buying nicer than contractor grade cabinets and appliances isn’t over paying. I was living in the house at that time. You can’t get a decent encasement window for under $250. I bought a vacant house all the plumbing was stripped and not a single appliances in the kitchen was remaining. Edit: I may be off on my appliances cost by $1300. It was 10 years ago.
MotoSlashSix t1_j9fw7o8 wrote
If you're in the industry and doing total kitchen remodels for under $25k then please share your company name and the photos of your work. Otherwise, it sounds like your sub-$25k kitchen remodels are not something you're willing to stand by.
DecayableBrick t1_j9jl6es wrote
No I don't think I will. I don't care about impressing people on the internet.
MotoSlashSix t1_j9k6t2w wrote
Because you're too busy trying to make people feel dumb on the internet?
wave-garden t1_j9fca23 wrote
Indeed. Not to mention doing the work yourself vs paying others, whether you can be patient and try to get deals on materials vs going with the fast options.
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