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Updated about 6 years ago, 11/03/2018

User Stats

172
Posts
46
Votes
Kumar Tummalapalli
  • Real Estate Investor
  • Chicago, IL
46
Votes |
172
Posts

When to gut rehab vs cosmetic rehab

Kumar Tummalapalli
  • Real Estate Investor
  • Chicago, IL
Posted

Question on a property that I am considering in the Avondale area . 

The cost to gut rehab is around 125 - 150k. With the holding costs and risk involved the return is not that great.

Asking : 250k

ARV Gut rehab , A plus rehab : 475 K

ARV cosmetic rehab : Not sure

1.5 story , unfinished basement

4 bed , 2 bath - 1700 Sq ft

My question is : When should we consider a gut vs cosmetic rehab

Few things I thought about :

1. Check the comps - Are most of them gutted and opened up ? Do we have comps suggesting that cosmetic rehab is an option

2. Current condition - Badly damaged and very boxy layout

Thanks Much

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