New building versus old

[builder]

I am looking to accrue bi level house to rent two levels in West side of Edmonton


1250 sq.f 3 bed 2 full buth top unit for $1250/month


1050 sq.f 3 bed 2 full buth lower unit $1050/month


There is two options :

[list type=decimal]
[*]to by the old (40-50 years) for about $280k and renovate it for $50K- total $330k
to bay tear down for $170k and build new - total $350K
[/list type=decimal]

Would I be able get a better financing and higher rent for the new becouse of the new bones (the renovated will look like a new ) ?


Appreciate your opinion with numbers if possible

 

[2ndstory]

Have you looked into those new construction numbers? Are you really going to be able to build for $78.26 a square foot????



Nik

 

[Herbert]

Option B will be more beneficial.

It will helps you in long turn and you will get high price of your house in future.

 

[builder]

Bi level is actually bugalo with basement raised 1.2 m

My cost for the this kind of bungalo today is $110 per sq.f *1250= $137500 plus development of lower level,detached garage demolition and landscaping = $179000



Igor[quote user=2ndstory]Have you looked into those new construction numbers? Are you really going to be able to build for $78.26 a square foot????



Nik

 

[Thomas Beyer]

newer is always better as you get higher rents and lower expenses through R&M ...



BUT: can you get the new one cheap enough for the higher rents and lower R&M ?



Also: to build you get different financing than older ones.



More details required .. as your numbers are insufficient. Can you actually build for the $s indicated ? If so, then yes, build. I am not sure if you can build brand new for this low per sq ft ! Can you ?

 

[builder]

[quote user=ThomasBeyer]newer is always better as you get higher rents and lower expenses through R&M ...



BUT: can you get the new one cheap enough for the higher rents and lower R&M ?



Also: to build you get different financing than older ones.



More details required .. as your numbers are insufficient. Can you actually build for the $s indicated ? If so, then yes, build. I am not sure if you can build brand new for this low per sq ft ! Can you ?





Hi Thomas


Yes I can .I know that it at least 25% less than builders charge you but It what I am doing for a living .(We actually been in touch when I met with Mike to discuss my multifamily project off Whyte Avenue.)


It will be rental grade one ` good bones but no hardwood, granite or solid maple kitchen.


Please let me know what other details needed. I would really appreciate your opinion .I would like to make the formula which will tell me how much I can pay for the land.





Thanks


Igor

 

[housingrental]

Go with option number two if what you have written is accurate.

More research should be done to confirm....