Remodeling: Should you buy value add?

[Paul Wolfson]

If you were buying a house for yourself which would you choose?

A) The house that is fully remodeled. Price: 750k.

B) House down the street. Same sq ft. Identical to house to A, but NOT remodeled. Livable for now, but will eventually be remodeled. Price: 700k. Rehab/Remodel: 50k.

The question at its core is would you rather spend your own capital on the remodel, or would you rather just buy an already remodeled house, preserving your own capital, and use that capital to invest elsewhere?