An interesting niche - or not? - Posted by Steve Silva
Posted by Steve Silva on October 16, 2003 at 11:20:07:
I recently bought a small 2/1/1 house for 42k. After converting the garage to a 3rd bedroom, new carpet, paint, updating the kitchen and bath, etc. (no more than 10k in work) it will easily sell at retail for around 80k. So I got this idea the other day … what about specializing in these little 2/1/1 houses that most other investors stay away from, getting them at least a little under FMV, then converting them to 3 bedroom houses along with your other basic rehab stuff and selling at a nice fat profit? I know you can’t do this everywhere, and not in every neighborhood, but in many neighborhoods you will see many/most of the 2 bedroom houses where the garage gets converted into a 3rd bedroom, so in these neighborhoods it’s a no-brainer I think. You might not want to end up having the only house on the block with no garage, but in the neighborhoods where it’s already being down successfully it seems like this might be a nice little “niche”. Anyone have any input, thoughts, comments, experience, etc to share?