And this Patel dude is dumber than a post. That $290,000 home he purchased in 1998 may be worth $800,000 today.
I’m, inclined to think the investor-owner is right. He may break even.
$180K purchase + $150K cost to boot out the disease + $50K taxes = $380K.
Over the summer, we just got finished with such a miscreant deadbeat occupant. The frightful condition in which the slime left our home would have cost us $100K+ if not for the free labor and material donations we received from church groups, local merchants, a general contractor who took pity on us and actively reined in the costs, even giving us certain fixes for free, and the like. I doubt this house will be in any better condition. Evil sh!t like this infectious disease Hanspal can do a lot of trashing and destroying this side of criminal vandalism. Ask me.
Once he gets everything fixed up, he’ll have roughly half a mill in. Or more. Plus whatever amount of money it costs the current owner to hold the property for the time to get fixed. Houses that look similar to this in that neighborhood go for about $600K. There are much grander houses that go for more there, but they look bigger and... well... grander than this house.
And he’ll only get his $600K+ if he hurries before the bubble pops. Which means he’ll pay a premium for labor and materials.
Factor in transaction costs, and maybe he breaks even. If he really makes it shine, maybe he makes $50K - $100K. For four years of his life, and the anxiety that came with it.
Having just experienced this, I wish every evil to rain down on Hanspal in this life.
A little digging turned up the address of the house. Although described as 3 br, 2.5 ba, it’s only 1.5 ba. There is a listing on redfin, and one is able to see photos of the interior on redfin and zillow. A lot of damage.
A very cute house a few doors down is estimated at about $600K. Another nice house on the block $615K. But the disease Hanspal’s house is on a less desirable lot, right on the corner with an arterial road. I think the investor will be fortunate to get $600K.
Break-even, plus or minus a little.