Tear down vs. Rehab

[Kevin Seith]

I have noticed with a lot of questions I see posted here in BP the answers are usually "it depends" or at least some form of that. To be truthfully honest I am some what expecting the same answer here... but I'd still like to hear everyone's general opinion on the matter. When do you find a complete tear down is better than trying to rehab a property? (I'm specifically speaking about 80+ year old properties) Generally speaking, I feel a rehab will simply clean up a place to make it more desirable to buyers and slightly increase it's value. Where as a tear down will allow you to "create" something new and tailored to the needs and wants of a modern buyer... We often speak about comparables and to try and keep our projects within the same parameters of the other homes within the same area so you don't over (or under) rehab. BUT is it possible to "transform" a neighborhood or community? Increase property values across a neighborhood? So over time, do you think it could be profitable to tailor to the needs and wants of the modern buyer?