I'm starting to see more fixers coming on the market here. Trouble is the prices have gone up a lot in the past 3 years and prices I was getting them at has gotten pretty ridiculous. Compound that with way higher labor costs from the trades (often $100 + per hour asking prices for labor) and higher material costs have slowed me down on doing repairs. I'm actually thinking of moving more towards just cleaning them out and mowing the lawn and then selling them to someone else. It looks like other people are doing the same thing. What with the current and upcoming economic uncertainty I'm likely not getting any more until next spring at the earliest. Then I'll assess how things are going and make some decisions.

Around here there are lots of people crying for "affordable housing" but they are dreaming. They want the real nice 2500+ sq ft houses for 80K when the prices are 400K+. Dream on. When you show them a 600 sq ft little 2 bedroom at 110K, they act entitled (How dare you!) . I am thinking about getting little travel trailers and renting them out on a gravel pad for $100-125 a week. They'd probably jump at that when the little houses are renting for 900-1200 a month. Let's compare: little RV trailer good enough to live in is under 5K plus maybe another 5K for a pad and to run utilities and rents for 100-125 a week. Little house 600 sq ft costs 125-160K in ready to go condition and maybe 40-50K plus extensive repairs if it's a fixer upper and rents for 900-1200 month. RV return on capital verses the house. RV 10K returned 5200+ per year. House 125-160K returns maybe 12K a year. I think I need to get some rv's and figure places to put them.

So are you seeing rising prices and rising repair costs for the fixers as well?

Here's an example: 1828 Harrison Ave Cheboygan,MI 49721 MLS# 201832070 A long, narrow lot with an old house that's had what looks like 2 additions on it in very rough shape. Needs everything and looks like the water run off on the roof is pouring right onto the foundation. It's a flippin' mess. Would take a lot of cash to fix this place up.

Richard,

I've only ever bought 1 house that was move-in ready (other than my own first house) way back around 2000 or so.

I "always" do fixers, so I very much know what you mean about the rising costs, and how the math often just does not work today.

I too have seen what I consider pie-in-the-sky dream listing prices on places that just make me shake my head.

Of course, these are MLS listed places - but even finding a wholesale type deal that works is challenging.

The way for me is to DIY a lot, but of course that takes a lot more time & there is certainly value in that, also.

All of the prices are higher. I realize that everything goes up but this time everything went way up, way fast.

We are looking at fixer uppers in the 60-80k range that I could have gotten for 25k in the not too distant past.

Couple that with the prices of materials and then tack on labor for the jobs you can't do yourself and these places are outrageous at times.

I still enjoy (for the most part) working on my places myself. I have an ever growing list of things that I need to complete. All of the important stuff gets done as soon as I can, but the little things are still there.

I'm doing that exact thing right now. Closed last week Friday. $65K. Knock the stink off it and mow the lawn for $5K. Sell to a rehabber for about $95K. They'll dump $30K into making it pretty, plus their time and labor and probably sell for $180-$190K based on area comps.

I don't have the skill set to be a rehab project manager, nor do I desire to acquire said skill set. So I'm fine making $20K-$25K for holding onto a place for a month and having my handyman clean it up.

My view is that long-term, residential real estate is going to be a more difficult asset to invest in. Laws are getting more tenant-friendly. Advocates for "housing as a human right" are gaining traction. The Govt solution is always more regulations. If you're willing to fight in that arena, or if you live in an area that simply doesn't put up with those shenanigans, you'll probably do well. I prefer commercial going forward sprinkled with the "wholetale flips" like Richard and I are currently doing.

Roy, When I look at realtor dot com under home values, it looks like they value the home next door at about 160K. There's others in that range as well in the area. Of course, the ones with water view and newer are more. At 160K, less cost of sale, maybe 8 percent that leaves about 147K less repairs, holding costs, insurance, taxes, etc. so about 97000 for all that. And winter's coming on, so it would be next summer before it was done. That's if there are no major things the pics don't show. If I wanted to net 30K before taxes that would only leave 67K to do all repairs and overhead.Looking at the inside of it, especially if I had to hire everything done it looks pretty risky.

Richard,

No hurricane damage from Helene. Some wind and rain but nothing major.

"So are you seeing rising prices and rising repair costs for the fixers as well?"

Just an idea that was presented in a real estate group that I am member of, there are folks doing No Habbers