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Sure. People who know what they’re getting themselves into and have the time, money, and inclination for such a major undertaking make it work. Frances Mayes is probably the best known example, but nobody really talks about the millions of dollars she had to spend rebuilding and renovating the place into what it is today.I've seen articles about Americans who've made it work. They bought in at a higher price point though.
You’re making it sound as though this is just slapping tiles on the bathroom wall. These properties are often centuries old, abandoned, with no plumbing or electricity and so structurally unsound they’re in danger of collapse at any moment. When the Italians say you have to “renovate” them what they mean is you essentially have to rebuild them from the ground up.As for "a fortune" this is rural Italy. Trades people aren't that expensive.
It would be cheaper just to buy a modern house. But there’s a sucker born every minute and the Italians know it. Theres a reason they’re only $1 and they don’t sell on the domestic market.