To demo or not to demo?

[Alex Varner]

I currently own a duplex on an FHA loan at 3.5% down that I am planning on using the BRRRR method on. From my understanding in order to refinance out of the house I have to have the house repaired/updated to the point where the ARV is high enough for me to refinance out. The immediate question I have is: I have a 2 stall car port that is in horrible condition (leaking roof, rotted wood, mold). Should I just tear it down or should I rebuild? Most houses have a garage or carports, but I don’t know if the $10-20k on a rebuilt garage would add much value to the property. Thoughts?

[Dave Chapa]

@Alex Varner  I was in a similar situation with one of my properties. We removed the carport and didn’t rebuild. The cost vs appraisal was not worth the money to rebuild.