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Building New Vs. Buying Old
As I am searching for my first investment property, the properties I continue to find of interest are typically older homes (built in the early 1900s), which tend to require a lot of interior and exterior work. For example. a duplex listed at $175k with estimated rehab costs of $25k (new structural beams, front porch, etc,) puts the mortgage around $200k, not to mention all of the miscellaneous issues that will appear in the near future. With an estimated rental income of $1k / month, the investment does not seem worth it.
Rather than purchasing a 100+ year old property, I am considering buying (cheap) land where I can build a multi-family property. Building a property would increase the likelihood the work is done the correct way and would have the most modern update amenities in order pass current regulations / laws, while also having the units look the way I envision them.
What are the pros and cons to this approach? I am sure I am under-thinking this in some way, but it seems to be a good alternative.
I appreciate any insight.
Evan