Big Rehab vs Teardown and Rebuild

[Spencer Carpenter]

I am a novice real estate investor. I currently live in a 150 year old house that is 3bd 1 ba, approx 1000 sft, and was purchased in 2008 at it's highest value. With the exception of the roof, just about every part of the house needs to be rehabbed (kitchen, bathroom, floors, windows, foundation, termite treatment, paint, plaster repair, insulation, electric and plumbing update) whether I want to preserve as a SFR or if I wanted to sell without a loss.

I'm starting to wonder if makes sense to just tear down and do a new construction. If you've ever been faced with this decision, please weigh in with your conclusion and how you came to it.