My roommate has actually looked into this idea a bit with our ex-neighbor who was also a contractor. It seemed very interesting to say the least.
When we were in Encino, there was a house down the street that we thought about doing that but they still wanted about $500,000 for it. The agent said it needed a "little work". From the outside, it needed a new paint job and grass. If you make good with a real estate agent, it all might work out. Our neighbor was one and we all talked about it but since we moved, it unfortunately got nowhere
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