So House #33 is a rental house in a B- (well, maybe I am biased… probably a C+ neighborhood), we bought it in February. Via the MLS, I saw a lot for sale in the area, it’s a triangle shaped corner lot in between brand new houses and some real bad ones.
The lot was listed at $17,900 and I thought about putting in a “stink bid” of maybe $5,000 and sitting on it for a couple years. The MLS did advertise that it comes with pre-approved plans and everything. I never ended up putting a bid in and it went pending after being listed about a month and a half.
Someone ended up paying $14,000 for the lot, and every time I drive past it I see they are building a brand new 2,000 sq foot pretty aggressively. I would guess it’s about two months from being complete…
I am stunned as to what this owner is planning on doing with the property. Best case, his construction costs are $100/sq ft. That puts his cost at $200,000 + $14,000 + other fees, etc. I did some comps… House #33 was worth about $120,000 maybe $130,000 after we bought it.
The highest sales within the mile area is $117,000. Including a 2009 house that sold for $100,000. Does this investor know something I don’t? I will let you know what happens. Maybe he is planning on renting it?