Sometimes the uglier is not always the better property! Looking today with a buyer at a foreclosed rehab, the idea came up that according to the listing, this property could sell for $200,000 x 2 (townhomes). That could be true, but is there any market data to prove that?
Looking at that specific neigbhorhood (the Southwest Gardens Neighborhood of St Louis City), I would be skeptical of a townhome in that price range.
At one point, buying a home and fixing it up was a way to add "sweat equity" to a home. In more recent years, the cost of improvements has risen. Of course, its still possible to get a good deal on a home, fix it up and either live in, lease, or sell it for a profit. The most important factor is getting a good price on the home.
In every real estate market there are homes that are presented as "good deals". But when the basic math is done: acquisition cost + repair cost, the sum of those two sides exceeds the market value. As always, buyer beware!
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