Would you spend $91,000 remodeling a $150,000 house?

[Shawn Pixley]

Why would you assume that prices for houses vary a whole lot through out the country. maybe Where you live it is a good deal but in other places it would be a horrible deal.

I took that into account. Median price for house building in Minneapolis is ~120$/sf. In upscale suburban Southern California the cost per sf is over 200$/sf. Of course here the median house price is over $650K. Wages are commenserally higher as well.

In 1984, some friends and I built two houses in the midwest (similar metropolitan area) for 135$/sf with us doing about 75% of the labor. By most US standards, 90$/sf is cheap for a functional house today. The 90$/sf does not account for the cost of the three acres. Acounting for the cost of the land just lowers the cost/sf.

My price does not assume that it would be worth that on the market, merely what it might cost to build. The question is, "is this a place to live or an investment?"

[Brian W Smith]

I generally should stay out of certain discussions,houses(not homes),holding a ranking on that list.

My only advice is to try,above all,to develop a working relationship with your contractor.This is over any budget constraint.It is impossible for someone,not in the biz to understand the complexities in building from a design standpoint.You've been burdened with aggressive marketing campaigns as long as "most" here have been alive.The contractor you want to work with,should have a vast knowlege of not only the period of house but any local established "stds".These are simply things he works with everyday,not something he read on an XY scale.You're looking for,paid insight.........The very best of luck(I'd skip the shop,build an addition on the house and use it for my studio....but thats me).

[David Weaver]

.........The very best of luck(I'd skip the shop,build an addition on the house and use it for my studio....but thats me).

Would you park a bus with an 8v-92 detroit diesel in that (or 6v-92 or 8v-71, ....)?

[Brian Elfert]

I took that into account. Median price for house building in Minneapolis is ~120$/sf. In upscale suburban Southern California the cost per sf is over 200$/sf. Of course here the median house price is over $650K. Wages are commenserally higher as well.

I wish I could get a house built for $120 per SF here in Minneapolis. I paid close to $120 per SF in 2001! Going rate now is at least $150 per SF based on bids from several builders and looking at what new houses are selling for minus the lot. The $150 per SF does not include well and septic required where I want to build.

One fly in the ointment on my project could be that the city could require the electrical and other stuff brought to current code. The contractor brought that up. I can't get in touch with anyone at the city to check on this.

[Shawn Pixley]

I wish I could get a house built for $120 per SF here in Minneapolis. I paid close to $120 per SF in 2001! Going rate now is at least $150 per SF based on bids from several builders and looking at what new houses are selling for minus the lot. The $150 per SF does not include well and septic required where I want to build.

One fly in the ointment on my project could be that the city could require the electrical and other stuff brought to current code. The contractor brought that up. I can't get in touch with anyone at the city to check on this.

I intentionally noted that the house is cheaper than what you can build it for. If you're buying a house to live in, it is a decent deal. If you are buying as an investment and the area won't support that type of home price, not a good deal. Only you can determine your calculus here.

[Brian Elfert]

I don't think I could even have that house built for $150/square foot if you include the septic. I have a bid right now for a new 1,100 square foot house at $209,000 including septic and well. I figure the rehab house with lot would be pushing $300,000 to replace. A high and dry 3 acre lot is $95,000 or better in the area. I would be at least $275,000 into it to completely finish the house with new kitchen. I have my doubts that the finished house would ever appraise for the replacement cost.

I found a lot today for $50,000 I could build a new house on for $260,000 total. Tempting to go with a brand new house for slightly more money. This would include an attached garage as well as that city requires it. I could build a pole barn for housing my motorhome so that would save money in the long run. The lot is pretty nice, but I don't really like the location. Harder to get to, and not as centrally located. There is also a large softball/baseball complex with lights across the street. There is a bar in the center of the complex.

I'm buying a house to live in. I'm certainly not going to build a huge garage for my motorhome and not plan to stay long term.

[Brian Elfert]

I decided to go with the $150,000 house that needs nearly $100,000 in work. The decision literally came down to the last five minutes of the business day today. Today was the last day of the 10 day contingency period the bank offers.

I was really, really close to going with a new house on a lot I found Friday, but the uncertainty of exactly how much the project would cost at the end pushed me to continue with the other house. The price of the new house would have been $20,000 more than this house, but it would have been new and it would have included an attached garage. The city zoning rules for the house I am buying are such that I really can't have an attached garage unless I want to attach a 2,000 square foot garage.

[Chris Padilla]

Sweet! Time to move forward and refocus...finally. Best wishes in the remodeling effort, Brian!