You’ve just invested in a new property with a nice single-family home. When you first invested, you knew there were some things that either needed to be fixed, or needed to be taken out and redone completely. Now that you’ve had the chance to do a full walkthrough, you realize that the problems are a bit bigger than you had originally thought. Do you remodel? Or just scrap it all and start from scratch?
On average, remodeling the home would take a shorter time commitment than building fresh would. Remodeling is a good idea when the house already has great value or specific appealing points that you don’t want to change. For example, if the property is set in an older, historical part of town that is known for it’s architecture, you probably wouldn’t want to change too much about the original house due to its appeal to buyers seeking originality. However, with remodeling investors are forced to work around or make comprises to “problem” areas (like issues with foundation cracks, etc).
Build from Scratch
Tearing down the house would offer a lot more flexibility with design, and would allow you to revamp the entirety of the look and feel of the house. The opportunity to offer new, modern features would be an advantage and would attract contemporary tenants. Th potential to save money by scheduling out all the plans for the house in advance is also a plus side. However, building from the ground up will cause a major time issue, and might not be an option for investors wanting to rent their property quickly.
While many things go into deciding whether to build or remodel, the decision is ultimately up to you. Things to take into consideration would be the neighborhood, what renters expect from a property like yours, and your comfort level. Having a property management company with an extensive and experienced construction department like C.A.B. Group means you have someone to ask questions and to bounce ideas off of. Don’t go it alone – ask a professional company that has over a decade of building experience in New Jersey, New York, and Philadelphia.