I know, it’s kind of odd here in Southern California. The bungalow houses in the right neighborhoods can go for as high as $700K in San Diego county.
I have my eye on a lot for $98K, the move is estimated at $40-50K. I have “guesstimated” somewhere around $200K into it, when all is said and done. Because we have to pour a new foundation at the new location, it will be somewhat easy to add some room into the house. Average selling price for a below 1,000sf bungalow in that neighborhood is between $425K and $450K. So, we could come out doing quite well.
The city itself doesn’t know whether to treat this as new construction or as a tear down. That decision could greatly effect the timeline. I’m not sure that we can get everything set by the deadline at the end of March. (When the house needs to be gone)
One of my brothers did it and another one is thinking about it. In my opinion it’s not a cheaper way to do it in comparison to building unless you happen to love the kitchen and bathroom of the house you’re moving. If you do any renovation, you’d normally lose any advantage by moving.
However, your market may differ.
Never ever ever never buy on appreciation. (See thread on buying for appreciation).
Based on the cost of the house being $0 even with the expenses the upside seems way greater in this situation than building new on site. In most cases you’re probably right, in this case I would have to disagree.
It’s a flip, so it’s not buying on appreciation. It will be renovated, the kitchen and bath will be redone, and most likely a Master Suite will be added. It’s updating and adding value. Buying for appreciation would be buying it, doing nothing and hoping that the market goes up.
The house as it sits has an ARV of $400. Purchase, renovation and quiet costs come in at around $200K. That’s a 50% deal. If the house didn’t have to be moved, this would have been gone in light seconds.