Total Rehab
Looking at an old farmhouse for sale that needs loads of work. Probably a 6 month project. Asking price is supposedly the value of the lot. 2 acres, $214,000. I feel like it's not worth what a vacant lot would be because the house either has to be torn down at a cost or rehabbed. I figure I would have to get it for no more that 180k to make it worthwwhile. Anyone run into a similar situation and is my way of thinking that it's worth less than the lot because the house is so rough make sense?
I am im Ma and have found this to be the case here and southern Nh. Depending what you plans are for the land, and how deep you would get into rehabing the home. You could rent the house out and offset the cost of the property, while you put your plans for the land into action.
S.S.
Kfran - you are thinking like an investor, the seller is thinking, well, like a seller. Tearing down the house may just have to be part of the opportunity cost to do what you need to do to make money. Keep in mind a vacant lot usually doesn't have sewer/septic already or power.
Needs new well and septic too.