Build on empty lot or purchase for rehab

[Anthony Salamone]

Hello all,

I would like some input here. I’m tossing around the idea of either rehabbing and hold for long term rent OR finding an empty lot and building a simple 3B 2 Ba for long term hold. Has anyone considered the same? In my opinion the cost of an existing structure and the rehab cost are phenomenal - might be more profitable for a simple house with rental quality materials?

[Anthony Salamone]

@Teri S.

That doesn’t seem to be there case here on Long Island. New construction seems to be assigned a higher tax value than improvements or say an addition to living space. There is almost an unwritten rule where folks are looking to build new; keep at least two exterior walls up and maintain the footprint to avoid being classified as new construction.