Look for the ugliest house in the best neighborhood!
Rehab vs New Construction
You can rehab for less than new construction. What to look for.
A rehab can be a good find ... or huge nightmare!
It of course comes down to money. Is there going to be a profit in the end. What do I have to do to this house to bring it up to it's market value and can I sell it for more than I have into it. It's that simple. Now if you are buying it for yourself and are going to live there, you are looking for profit further down the road and you can absorb some cost now into nicer finishing materials and save over buying that same house after a contractor has rehab it and is flipping it. Plus, he has to pay income tax on the profit, so he wants top dollar.
Now, if you keep the property for at least a year, you will only pay 15% capital gains. If you're going to live in it, then capital gains usually aren't an issue after a few years. So if you're looking at rehabs, while you're learning what to look for, hire a guy who knows and let him tell you what's wrong with the house.
A certified home inspector can give you a report and then you have a much better idea what shape the potential project is in and if it is worth the effort. And you're realtor can give you advice on the property values in the neighborhood. And once again you assume the responsibility for your own investmentsTools and Parts
DISCLAIMER - The views and opinions presented on this web site are that only. Views and opinions based upon our experience as owner builders. We are not responsible for any loss or injury resulting from any information obtained on this site. We are not licensed contractors and are not attempting to sell you any contracting services.