> You can drive through old neighborhoods near me with 1000 sq ft houses that sell for $40k because nobody wants a house that small. Sure, but a $40k house wil

> You can drive through old neighborhoods near me with 1000 sq ft houses that sell for $40k because nobody wants a house that small. Sure, but a $40k house will need anywhere from $90k to $160k worth of additional repairs to be safe to inhabit. And since that cost isn't in the equity, most people in most areas can't qualify to finance that. (A $200k mortgage is not identical to a $40k mortgage and $160k reno loan).