Updated almost 3 years ago on . Most recent reply
remodel or 1031 exchange
Hi all, We have a property built in the 70's, bought at 200,000 worth 600,000. The area seems to be up and coming. I don't expect it to ever lose value due to close proximity to the interstate, DTC, and lots of restaurants. It's starting to need quite a bit of maintenance. Currently it is rented under market value by quite a bit. 2 baths have been remodeled, 1 basement bath needs updating, currently has some plumbing issues. My question is a running debate as to weather we should put a chunk of money (200,000) into it by adding on to the 1 car garage to make it a 2 car and adding a family room,( it's a big lot), and redoing the electric. We would move in for a couple years and rent our current primary home, then start renting it again. The idea would be to increase the value/ rental income and lose the headaches of older property maintenance. Or would we be better off to sell/ 1031 into a newer property w/ fewer maintenance issues. We are close to retirement and want cashflow not another mortgage, this one is paid off.