I'm wanting to determine whether or not to Rehab vs Build Anew

I'm wanting to determine whether or not to Rehab vs Build Anew

Member since 2019 · 14 posts · 1 vote

Hi, I'm a newbie real estate investor.

I have a home on about 1/4 acre of land. Holes in the roof have caused real damages to the inside (ceilings, floors and walls) along with mold/mildew and suspected termites. Looking at the outside it appears salvageable (built in the 30's)... I obtained it through taxes. I want to use the house or any other I place on the land as a rental property. My biggest concern is the mold situation (clearing it all up) because I most definitely don't want a future tenant getting sick on account of me making the wrong decision.

So my question is: Do I rehab or tear down and build anew (my replacement idea is a binishell concept home)??

Any ideas are greatly appreciated.

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  • Architect · Providence, RI · Member since 2018 · 137 posts · 55 votes
    7y

    Sounds like a tear down to me. Multifloor mold issues and signs of rotting/deterioration probably goes a lot deeper than you can visibly see. You can go in and salvage any steel, appliances, or siding you think might be useful for the new build. A picture of your situation might help if you want second opinions. 

    Also, i'm not sure of your local zoning but if you rebuild - even within the same footprint - you can build smart and maximize the space to get the biggest ROI from your rental property.

  • Member since 2019 · 14 posts · 1 vote
    7y

    The mold issue you mentioned is in line with my thoughts. And your conclusion is the same as mine as well. I plan on keeping this property so the last thing I want to do is place a family in here and someone gets sick from mold(unseen) to me.

    My solution was tear down and build a binishell (system) with green tech(solar panel system, rain water purification system, etc...) [Note: haven't come across anyone familiar with the binishell systems]

    Could you please let me know if you I'm on or base with this idea? Thank you! I appreciate your time and assistance.

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