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There are wild, extravagent estimates and estimates that are very plausible. As Ausprop said, this appraisal is one of the latter. I have an IP about 2km away from the one advertised. It's modern (1991), brick and in a better suburb. But being one of two on the block it would be...

Here's a (close) example http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=102545776 (admittedly not in the best part of the town, a bit old and not brick) Peter

Or even pick up a house in Hay St (they're cheap) and do a conversion. Just beware of any asbestos fibres floating around. Peter

Karina certainly got a great deal. A property like the example would normally go for approx $110k. Being a mining town, yields for all types of property are above average. Kalgoorlie has seen some capital growth since 2003, but it's not been nearly as dramatic as Bunbury, Geraldton...

Depends on the extent to which Karina wants the publicity and if she wanted to go into property spruiking/buyers 'advocacy' ;) Forget the waiting game (buy & hope) or trying to tee up renos with unreliable tradespeople; holding a good rabble-rousing seminar is surely the best way to add...