How much $ to demo a small, condemned 1930s 3rd ward house? Any hidden costs in lot ownership besides taxes? (West: real estate)

[Bad Haggis]

Looking at the area around UH for a $30-50k cash deal. Most of them have a small 900sf house dilapidated or burned beyond repair on a 4000-5000 sf lot.

How much does it cost to demo and remove and are there any other hidden costs to owning a lot? Infrastructure? Upkeep? Tax is about $1k/yr. My plan would be to hold it for 20-30 years, show up quarterly to check in and get away with doing the least amount possible before reselling.

Thanks.

[EasilyAmused]

I would find out if you need any liability insurance for the lot. If anyone gets hurt on your lot, which is private property, you could be libel. I know I had to insure a property several months before actual construction began.

Can't imagine demo would be over 3 grand for something like that.

[Schumacher713]

Around 2-3k is my guess. I can recommend some companies if you would like. I would tear it down. You don't want to carry insurance on it. If someone gets injured in the house you are liable. I would also look into buying a house that is being moved instead of torn down. Move it there and lease the house out. As an investment I still think it is 20-30 years before that area even starts to turn around.

[astrohip]

Originally Posted by Bad Haggis

are there any other hidden costs to owning a lot? Infrastructure? Upkeep? Tax is about $1k/yr. My plan would be to hold it for 20-30 years, show up quarterly to check in and get away with doing the least amount possible before reselling.

Thanks.

Interesting question.

/subscribe/

[CSD610]

Originally Posted by Bad Haggis

Looking at the area around UH for a $30-50k cash deal. Most of them have a small 900sf house dilapidated or burned beyond repair on a 4000-5000 sf lot.

How much does it cost to demo and remove and are there any other hidden costs to owning a lot? Infrastructure? Upkeep? Tax is about $1k/yr. My plan would be to hold it for 20-30 years, show up quarterly to check in and get away with doing the least amount possible before reselling.

Thanks.

I had a small home demolished a bit over a year ago in Illinois and it was $5000.00 for the demolition, clean up and to haul everything away. As far as owning a lot I have to pay real estate taxes and keep the lot mowed.

[Bad Haggis]

Originally Posted by EasilyAmused

I would find out if you need any liability insurance for the lot. If anyone gets hurt on your lot, which is private property, you could be libel. I know I had to insure a property several months before actual construction began.

Can't imagine demo would be over 3 grand for something like that.

Good point on the insurance. I will look into it. Kinda funny someone could go after me for getting hurt while trespassing on my property. Wouldn't put it past anyone in that area to try and get a piece of the pie. But it looks like developers are scooping up one lot at a time and I may jump in on the action. Preferably on a block where there are few homes and a developer has bought up multiple lots.

[HookTheBrotherUp]

Originally Posted by Bad Haggis

Looking at the area around UH for a $30-50k cash deal. Most of them have a small 900sf house dilapidated or burned beyond repair on a 4000-5000 sf lot.

How much does it cost to demo and remove and are there any other hidden costs to owning a lot? Infrastructure? Upkeep? Tax is about $1k/yr. My plan would be to hold it for 20-30 years, show up quarterly to check in and get away with doing the least amount possible before reselling.

Thanks.

It can be 5-10K! Don't buy it if it has asbestos siding, or shingles, else you have to get a hazardous materials permit, and a special crew to properly dispose of the asbestos, that alone is a 2-3K cost, and that is not demolition, just the removal of the asbestos BEFORE demolishing the house. You do know that you need a permit to tear down a house, yes? That is how they will know if it has asbestos, or not.

[DJboutit]

I would pass 5000sqft is really to small for a decent size home I would be looking for no less than a 7000sqft 7500sqft lot. In other area I would be looking for a bigger lot

[Bad Haggis]

Originally Posted by HookTheBrotherUp

It can be 5-10K! Don't buy it if it has asbestos siding, or shingles, else you have to get a hazardous materials permit, and a special crew to properly dispose of the asbestos, that alone is a 2-3K cost, and that is not demolition, just the removal of the asbestos BEFORE demolishing the house. You do know that you need a permit to tear down a house, yes? That is how they will know if it has asbestos, or not.

I appreciate this. I knew about the permit but didn't think about the abatement since I always shy away from anything too old or too new...Really 5-10k isn't too bad considering I thinking long term.

Djboutit I don't really care about lot size as.long as it isn't real small like 2000 sf
What I am seeing going through tax records is you'll have a block with 10-14 lots with a couple of homes, a couple of condemned places and all empty land. The empty land is mostly owned by a single developer. If I can interrupt the flow of ownership in 20 years I may be able to sell for higher $ or open up some sort of business, maybe one that caters to UH, grow it and sell it. I have no intention of living there.

[EasilyAmused]

And people in West U build 5,000 sf homes on 5,000 sf lots...so yeah...is that not big enough? Way too small of a yard for me, but it doesn't slow down some apparently.