Remodel vs Teardown
My wife and I are looking to purchase some more homes this year. However we came across this one property we were interested in and the property is so dilapidated that the REALTOR who listed it stated that the property could be torn down and a new house constructed in it's place. While my wife and I both agree that the property is in bad shape, I figured there has to be a formula that some of you experienced investors use when considering an UGLY house.
I have heard 70% of FMV-repairs etc etc. But when looking at ugly houses, there has to really be a cutoff point to where it really isn't worth anything saving a house, but to remove it completely from existence.
For some of the older older type homes in the turn of the century 100+ year old homes, there are several, several items that would need to be remodeled to compete with existing, or newer homes.
Thoughts?
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