Under the circumstances, his profit is 100%.
100%, Less renovation costs.
Mixed feelings on this. I do not like people that own property and allow them to become blighted and abandoned neighborhood eyesores.
All the owner had to do is show up years ago and evict him as a squatter.
Well, he did renovate the property so he did have some costs in it.
You need to work on your arithmetic.
If he bought it for $100 and sold it for $200, his profit is 100%: (200-100)/100 -1 = 100%
If he bought it for $0 and sold it for $200, his profit is infinitely high: (200-0)/0 - 1 = infinity. Actually, it is undefined since you cannot divide by zero. Just do the limit as the purchase price goes to zero.
“Under the circumstances, his profit is 100%.”
If he bought something for $100 and sold it for $200 his profit would be 100%.
He was a squatter so I don’t believe he paid anything for that house, did he? Whatever he invested into the house if anything would be quite small compared to the sale price I suppose.
Thus his profit percentage would be orders of magnitude greater than 100% and approaching infinity mathematically speaking.
To be fair, the squatter paid forthe repairs and renovations he did and also the property taxes or it long ago wouls have been in tax foreclosure.
It’s not a bad plan if you possess the dyi skills to rehabilitate abandoned properties.