Updated over 6 years ago on . Most recent reply
Joseph E Lowery Teardown VS Rehab
Hello BP,
Im starting the rehab property on my first ITP flip. I acquired a property on Joseph E lowery for $55k
It is a complete gut job. The estimates for work are around 80k. With comps sitting at around 220K-250k. The home is not in a historic district and the layout is makes for difficult updating.
I was wondering if anyone had any experience or guidance on Teardown vs Rehab. Do you think there would be any profit left if I went with a rebuild?
The home is 1100 square feet single story with a partial basement.
63 Joseph E lowery is address.
Most Popular Reply
Well, you just presented the numbers for a rehab -- purchase at $55K, rehab at $80K and resell at $220K. That's probably about $50-60K profit, depending on how long it takes and how you finance it.
What are numbers on a rebuild? To determine that, you need to figure out what to build, determine how much that will cost and then determine what that rebuilt property will sell for. Once you have those numbers, the decision of which way to go should be pretty straightforward.