Updated about 5 years ago on . Most recent reply
New development vs. rehabbing the old
The age old question, “Should we build it new, or fix up the old?” I know a lot of people will say it depends on the area class (A, B, C, or D) you live in or is it even the best/highest use of the land?! But I live in a small, expensive market in NC (Pinehurst). The class A Facilites are a dream, the D’s not so much. But even the D’s are way overpriced.
So is it worth it to build on a busy corridor near the main hub of my market or try to get B, C, & D’s class properties for a lesser price? Because we could get land fairly cheap and develop (A-B) for a lesser price as well, and shouldn’t have any issue generating good rents and cash flow (depending on structure of money). So, would it be better to develop? Is that the best use of the land that we’d be using? Let me know your thoughts.