1/2 price houses

is this a unsecured loan ? What is your loan security ? The house is on their land and their lender wont want to allow a second mortgage for this. And will they get finance for vacant land if they told the lender their proposal ? Sure you can rent them a structure - eg akin to a workmans shed but they could stop paying. What then ? You are dealing with people who cant afford to buy a old house so the financial risks are great. Unless you add "services" they can do this themself ? There are hubndreds of [project builders who build a new home for a price that is sale handover. None of them rent it to the lendowner. Instread they make a buck on the build. Isnt that what you should target ? Second hand dwellings may appeal to some budget buyers. But if its not well finished they wont want it for rentals.

I would argue like @Westminster that the costs of transport, removal, services connections etc renovation etc likely mean the $80K place will cost $150K at the end anyway. Then add GST....

 

Well removal houses are done all the time in Qld.

Often wake on Tamborine Mtn with a low bed dragging a workers cottage to its new home.

Costs vary, but are all about the transport.

Personal opinion is stick to good ones, bc the costs for good versus average end up the same, but hte end result varies. Police house got moved up years back (from Ipswich way) and is now stunning. Owner gets excellent rent.