I love to find the worst house on the block when the block is bringing in sales prices fixed up at twice the value. I may buy this one myself.
Contractor's special they quite often say but with the FHA 203k and the FNMA HomeStyle Renovation loans it is buyer's dream home too. Yes it needs work but that is exactly what we do.
Problem 1 is that these loans only go to $625,500 at this time, in Hawaii they go to $771,000 but this one is in San Francisco. If the value is $1,500,000 after improved why would you want such a low loan amount? Likely you don't need a loan at all, you can just buy it and fix it up but I have found that people with money typically know how to leverage their money.
Why not put a loan of $625,500 at these low interest rates and put your other money to work as you can likely make much more than 4% investing your own money elsewhere and the additional ability to have your cash close at hand is phenomenal.
This particular home is a single story with a second unit scabbed into the lower level. By making it a two story home and taking advantage of that lower level as additional master suite or in-law space but incorporating it into the overall living area and providing a proper staircase down to that level the value is enhanced significantly.
Keep your eyes open for me if you have a real "dump" that needs to be sold, we have lots of buyers for these type properties and who know, you may get the listing back all fixed up.
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