I looked at a house today that seemed to be a pretty normal brick bungalow from the outside, but the inside was a total disaster. it was about 100 years old but nothing on the interior was salvageable. Most of the walls were crumbling, the floors were warped and broken. Both floor and ceiling joists were exposed and barely holding on. At a minimum this would be a total gut rehab. But where should I draw the line on this. At some point it is better to knock it down and start over, right?
Depends on the foundation, plumbing, electrical and roof. Conditions on those will help determine if the house should be torn down or completely gutted and rehabbed. Also, look at walls and see if the wood behind the walls are in bad shape too. My 2 cents.
What are the numbers?
If you rehab it, what will it cost, how much profit will you generate and what will your margins look like?
If you tear it down, what will it cost, how much profit will you generate and what will your margins look like?
Answer those questions and we should be able to recommend which way to go...
Join the Largest Real Estate Investing Community
Basic membership is free, forever.