At a loss...rip down or try and restore?

[Brielle Phillips]

Hello BP Community,

I am in desperate need of insight here. I purchased an up and down duplex in Upstate New York March 2021. Its an old home built in 1910 that definitely has needed and continues to need major work. We have sunk a good amount of money so far in replacing main water line, cosmetic upgrades, updated tenants kitchen last month and multiple landscaping projects (removing big trees). Now we are faced with two major projects that need attention. The basement needs to be redone as the walls are crumbling (yet no major cracks identified in inspection) and our home has an enclosed double/up-and-down porch. The porch has been sinking over the years and really just feels unsafe. Cosmetically it needs a lot of work as the inside is pretty old as well. I've had two reputable contractors come so far and both have been pretty straightforward that its a huge cost to try to stabilize or rip down. They both honestly told me they would rip down. One contractor said he would rip down, reside the house and build steps up to the door and the other contractor said he could try and stabilize it with concrete blocks and redo the pillars but that could run starting $15k and he said it could easily double or more (based on what they find when they open up the bottom). 

I am curious what other investors would do in this situation? The first contractor told me a rip down and rebuild could be close to $100k so that's definitely not an option for us. I am unsure how much the property value would decrease if we removed such a major structure...would you all spend the money to try and stabilize and cosmetically touch it up or would you rip it down and reside the house?

Thank you,

Brielle

[Brian Boyd]

I know you really want to repair it economically, but I really think you should tear it down and rebuild it. Yes, it will cost more money. Yes, your rental revenue will stop during construction, but you could easily make your money back and pick up appreciation along the way. Another alternative is to sell it and move on. I think you have a few options here that, if you are divorced from the emotion of the property, will yield you good results.