To build or to rebuild... That is the question!!!!!!!

[Nathan Allen]

I have been entertaining the idea of buying a large apartment complex to remodel in Oklahoma City *OKC. However the thought has crossed my mind many times to instead buy some land and develop a complex into exactly what I'm wanting. Plus as an added bonus everything will be brand new so no Cap X and very limited head aches for the first few years while we stabilize the asset. Granted during the construction phase there will be no cash flow, but with a construction loan we only have to pay the interest which will still be quite a bit of cash every month... But at least manageable!

I have found remodeling to be quite costly as well as time consuming. It took me quite a bit more time in addition to capital to remodel my 4 plex located in The Plaza District then it would have to just build a new one from scratch if the zoning was approved. Granted now I have a great vintage class A asset in a great location, but the cost was a real killer hahaha

You guys have any experience, thoughts, ideas or insights as to what direction would be the best to move in? Thanks so much for you time!!!

[Jason Hirko]

@Nathan Allen No joke, I have a 8 plex in Beaumont Texas that I bought for $96k, spent $15k on new electrical service, rented out the 3 units that were inhabitable, and then cash flowed the rest of the renovation until I had redone all 8 in about a year's time. Now it's worth about $300k, and replacement cost is like $500k!