No, you are not Crazy! I would buy it and fix it just to live in it. I love the wood trim and floors. Bathroom needs just a bit of fixing. You are right though, the kitchen is a gut job. Need some landscaping to remove the big tree in the front to actually see what a nice house it is and let some sun shine in. This one is hard to pass up at that price. Good luck with your decision! NancyLouise

Get your comps, do the most thorough pre inspection that you can and if both of those are good.... I'd sure do it!

With an asking price of $25K, I assume Comps would be used to get a sense of what it might go for in a year when you re-sell?

Looks like a lot of potential!

This house last sold in 2010 for $78K. Fixed-up house on the same block went for $105K last year (100 sf bigger). Other houses within a few blocks on that street have sold for $50-60/sf. So I think the $100K is conceivable after we work our magic.

Linda, the problem with buying it as an investor is that then I've got to compete with other investors, and they'll likely bid up the price (assuming the basement's not a hot mess). If I make an offer as owner occ, I get first dibs. We bought our current house that way, and only paid $14K.

I'm going to do a drive-by on my way home and check into the driveway/backing out issue. Meanwhile I left a vm for the listing agent to schedule a showing.

In California those HUD Foreclosures go fast to young couples who are owner occupied and here if you don't put in a high bid, you lose. In your town, it may be different. We tried that owner occupied bidding thing, but it was still a war. We are happy we lost. There was this hidden problem we were glad we didn't have to face.

You mentioned that, fixed up, it would sell for $100k. How much would it cost to completely update it? Will that amount plus the $25k purchase price leave much margin for profit?

Um I'm guessing it's also got knob and tube wiring. How much would that be to update? But I'm like you, I drool over old homes like that.

Very cool house!

Honestly, weedy, you are not new to this, therefore, you have an idea of what surprises could be there. You also tend to be quite thorough in your analysis so you can be confident in whatever decision you make. It is quite lovely.

It sounds like you are pretty experienced in this area, and the house looks interesting to me. I just thought I'd add what I did with a similar type drive, narrow, longish, although it did not exit onto an especially busy street....I perfected my backing skills. I never, ever drove head first into that drive or garage, always left the premises facing forward.

It wasn't so much the backing out prompting me to get it down pat so it was automatic and easy, it was one simple dead battery one time only, and no way to get easily to the front of my car with standard jumper cables ;)

@suzi: Since move-in-ready houses around here are quite affordable, we don't have the high COL dynamic where young buyers have to jump on fixers because that's all they can afford.

@jewell: I ballparked $25K in my OP, so that leaves 50K "profit". Obviously needs to be borne out by an in-person inspection.

I stopped by the house on my way home from work. Some things I could see from my walk-around:
-the brick work has had some tuck-pointing done.

-the vent chimney looks like it needs some tuck-pointing (or else that stack could be removed). The fireplace chimney looks fine.

-it's got what I think are asbestos cement shingles. They look like this. Can anyone advise?

-some of the windows (all original, with storms) have broken glass or torn screens, and some of the outside paint is flaking.

-the driveway is cracked and the part in front of the garage is overgrown with grass. It's fairly steep going from the road over the sidewalk, then it's a bit flatter. OK backing out, because there's a clear view of the road when the car was on the edge. Hate that steep part, though.

-the back yard opens onto an alley. It's fenced, but there's plenty of room beyond the fence to build a garage. Maybe bust out the driveway, plant grass, and move cars to the rear?

-the tiny garage is full of junk.

-the neighbor's garage looks to be right on the lot line. The 2 lots on the other side are vacant, and currently for sale for $10K each.

Where can you buy a house for 25K?

In lots of smaller towns in the midwest.

And areas of the NE, once considered the Rust Belt ... older previously industrial cities that have areas of old homes in need.

Without qualifying it, a 200% return sounds great. However, all the risk and work for maybe $50k return just doesn't seem worth it to me.

How does the capital gains tax affect you if you sell before 2 years?

I did a self-tour yesterday, took a bunch of photos and got a closer look. It's got some work! I posted details over on Old House for renovation advice: Photos of the work needed

@jewell: In my world $50K isn't small change, and certainly worth a year's worth of weekend labor. :-)

Well, I took Mr. Weedy over to look at it again yesterday. We had a flashlight this time, so could see the (white) mold growing on the bottom of the basement paneling and the 4 water-collection buckets in the attic.

That, coupled with the less-than-desirable location and lot, are making us take a pass on this one.

sounds like a smart decision. Can't change the location.

Zoning changes possible?

Who owns the two adjacent lots? Thinking teardown and condos or townhomes over the three lots.