Home Selling in Houston>Question Details

Trulia Houst…, Other/Just Looking in Houston, TX

Which sells with the highest return: maintaining an expensive new build or refurbishing an older build?

Asked by Trulia Houston, Houston, TX Mon Apr 15, 2013

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Here's a recent example which should place matters in perspective ...

My investor client purchased a property in a desirable (but not exclusive) location for $165,000 cash. It was in deplorable condition, to the point at which the entire garage (including the slab) had to be demolished. The home was gutted back to the studs, and completely re-done at a cost of approximately $100,000. With a total investment of about $265,000 the home was put on the market at $389,900. It sold in four days for $385,500. Since the investor has a broker's license, he marketed the property, saving at least $11,500 in Realtor fees. Overall, he cleared about $100,000 in four months. There is no way that one can yield that kind of profit on a newer build, irrespective of cost.

Al Geffon
(713) 213-6350
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Mon Apr 15, 2013
Depends primarily on the location. Lots of people are looking to move closer into the city, so if you can rehab a home in a desirable location, you can make a nice return on your investment.
0 votes Thank Flag Link Mon Apr 15, 2013
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