Need help! first time investor!

[Festus Emore]

We are looking to purchase a property in Melbourne, FL. It is a 900 SQ FT home built in the 1960s and sits across from a cemetery. The home is in bad condition and has not been lived in for several years. We've been going back and forth trying to decide if we should renovate or rebuild. The property is being sold for 29K but we are worried with cost of renovation or new construction we will not have enough upside to profit. We are extremely new at this and feel like we are hitting a wall and feel like we need some guidance. We would like to use this as a long term rental but flexible to short term. Any words of wisdom or guidance would be greatly appreciated.

[Sergey A. Petrov]

Run the numbers (and comps) both ways - rehab (cost of same and market value once done) and demo and build new (same thing - cost to demo and build and market value once done) and see where you come out. Be careful not to overdo it which a lot of people do. The quality of the rehab (or a new build) should fit with the neighborhood. Gold plated countertops make sense in some neighborhoods and laminate countertops make sense in other areas