[quote=AN][quote=bearishgurl]It IS, for a fully “rehabbed” property in the prime areas of PL.[/quote]I guess that’s where we disagree. It’s a darn good deal at 2000-2001 price. At 2003 price, it’s OK.[/quote]
AN, you’ve still got in your mind that today’s listings should sell for “2000-2001 price” and “2003 price,” irrespective of how much $$ (and owner labor) was spent on improvements since then. Do you think EVERY property in EVERY area in ANY condition should adhere to [certain year] pricing?? Do you think EVERY area fell victim to “don’t-ask, don’t-tell financing?” Don’t you realize that sold prices are all subjective depending on seller investment, possible seller financing or concessions and most importantly, location of property???
[quote=AN][quote=bearishgurl]Yes, there IS a point in discussing the two areas (as it applies to how much to invest in them), AN, because YOU (in essence) stated these sellers overspent in PL. YOU stated that YOU were able to do the job(s) for less in MM but (1) they are not, in actuality, the SAME JOBS, and (2) comparing MM to PL is comparing apples to oranges.[/quote]No, there isn’t a point in discussing the two area, since you just stated, they’re apples to oranges. It doesn’t matter whether the rehab was done in MM or PL, the labor cost is the same and the material cost is the same. So, again, there’s no point in bring up MM further. What I disagree with is this statement from you:
I wouldn’t be surprised if the 2003 owners sunk 100K+ into the property in materials alone in ADDITION to labor costs and sales costs.
Do you still think the upgrades cost over $100k in just materials? . . . I never stated that the sellers overspent, since I don’t know how much they spent on upgrades. I was just disputting your $100k+ in materials statement.[/quote]
Yes, and regarding labor costs, I think my estimates are LOW, because I mostly have experience with (very talented) DIYer’s and “handymen” who often tell me that contractor labor is typically 3x the cost of mat’ls and they never know what they are “getting into” (i.e. termite damage around potential window replacements, etc, etc) until they have already torn out the old item. The mat’ls alone in this property cost +/- $100K (+$40K/-$15K) due to unknown factors and parts of the property not shown in the photos. Labor costs are only partly known due to possible seller labor on jobs not requiring specialized equipment or knowledge. Properties of this era also had a “wall heater” or “hot water heat.” We do not know if it has been recently replaced with “central heat” and/or upgraded plumbing and electrical work, mostly requiring permits (read: professional licenses). Without invoices from the seller and knowing what they may have tackled (successfully) themselves, we don’t really know how much money in labor they have sunk into it.
