There are homes on the market that are listed for less than 50K. s. Considering the median home sale price in St. Paul is around 182,000 this year and the average is over 200K. To home buyers 50K -100K really seems like a bargain. The bargin priced houses being sold at auctions are not always a bargin.
Unfortunately there really isn’s such a thing as a 50K home that doesn’t need a lot of work. I am sure there are some exceptions but not many. It is possible to spend more money than a home is worth getting it up to code and livable. The city has rules and will not allow houses to be lived in until they meet certain standards.
It can be difficult to borrow money for the repairs and at least here in St. Paul the city will require permits and licensed contractors for many common repairs.
Inexpensive houses that need a lot of work are an opportunity for people who have experience rehabbing houses and have the necessary funds to do so.
The professional house flippers do not purchase a property until they have a pretty good idea how much it will cost to fix it up and how much it will be worth when it is finished. Even the pros end up over budget and they sometimes over estimate the value of the home once the work is done. Like all types of investments investing in real estate is not without risk.
First time home buyers can find some bargains if they look for homes that need cosmetic work like painting and carpet removal and maybe some hardwood floor sanding. These homes are going to cost more than 50K. They may need to remove wall paper and dropped ceilings and lighting from the 1970’s. Often the home owner can do most of the work themselves with or without help from family, friends or YouTube how to videos.
It is possible to improve the value of most any home by making smaller repairs and upgrades like new exterior doors or a back splash in the kitchen or some new lighting.
