Should I do New Construction or Remodel First?
I currently own a home that is approx 3,000 SQ.ft with 3 levels including basement.This home needs renovation in the ballpark of 100-125K. I have an existing line of credit on this property (not a mortgage) of $48,000. I expect this home to appraise at 375K-400K. Secondly, I have a lot 2 blocks away that had a home on it but I razed it because the roof collapsed in and the water damage was serious. I would have had to frame new kitchen, bathroom and frame the whole second level with new roof, repair foundation all new electric plumbing etc. I know people get twisted on new construction costs But I do have sewer and water already running to the property. The first pic is the lot I want to build on. The second and third pic is the existing structure and yard of existing structure. I own the lot free and clear. Because of financing (dti) Should I focus on new construction and slow walk remodel? Or do remodel first and hope to get financing on new construction? I have no desire to sale I would use both as rental income. I believe that when the new construction and renovation are done I would have a total of at least 700K in assets when completed. Both properties are in Maryland on the DC/MD borderline. Should I do new construction or renovation first? I only have 20k in cash because I put a new roof on the remodel property in fear of rain this summer and it was already leaking. I replaced all the plywood and shingles because plywood on roof was dark and wet. I also removed vehicles, cleaned yard, Removed old ceramic flooring and drywall to the studs. P.S. I AM currently renting out a small room in a boarding house to save money until this is done. Should I do the remodel project first or take advantage of financing and do New Construction. I just turned 33 and none of my friends or family understand.
