Hey guys, just looking for some opinions. I have pretty much made up my mind but somebody might have a nugget of wisedom. I'm looking for a rental property and have two options that I have found. A house built in 2004 and one in 1960. Both are 4 bedroom and about 1100 sq. foot and rent out for the same ($1600ish). They are both close to the college.
The newer house would need minimal work to get ready to rent. A cleaning and maybe a couple walls painted. There is no garage and the lot is smaller. Its in a pretty ritzy neighbourhood. Asking price is pretty much going rate for that type of house.
The older house hasn't ever been renovated and is in decent shape. The lot is huge. To bring it up to my standards a major renovation would be needed. The basement would have to be gutted and redone. While the basement was open it would be a ggod time to redo the upstairs kitchen (plumbing would be easy to move). The fireplace would be removed so I would have to pull the chimney so that means messing around patching the roof. Carpet would need to be replaced and the hardwood restored. I'm figuring $60,000 in renovations but you would probably build $20,000 in equity.
The problem with renovations is they take time and where do you stop. The new house you can't gain any equity (maybe build a garage) but shouldn't have any hassles for awhile.
Discuss....
The newer house would need minimal work to get ready to rent. A cleaning and maybe a couple walls painted. There is no garage and the lot is smaller. Its in a pretty ritzy neighbourhood. Asking price is pretty much going rate for that type of house.
The older house hasn't ever been renovated and is in decent shape. The lot is huge. To bring it up to my standards a major renovation would be needed. The basement would have to be gutted and redone. While the basement was open it would be a ggod time to redo the upstairs kitchen (plumbing would be easy to move). The fireplace would be removed so I would have to pull the chimney so that means messing around patching the roof. Carpet would need to be replaced and the hardwood restored. I'm figuring $60,000 in renovations but you would probably build $20,000 in equity.
The problem with renovations is they take time and where do you stop. The new house you can't gain any equity (maybe build a garage) but shouldn't have any hassles for awhile.
Discuss....
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