Greg already asked the question I had, but another question is that if you plan to continue renting it out after the reno, how much more rent would you get? So, what is the return on your investment of time and money. Also, this will take quite some time (especially for the parts you do yourself which is on top of your regular job), during which you will forego rent - so remember to add that in to the total cost of the project.

The current value is just due to condition of the home. I looked at some local 2 br properties in the area and they seem to run 140-160. I was planning this taking approximately 6-8 months.I am semi retired,work about 24-30 hrs a week.I know it's quite a large project and wouldn't be unhappy if it took a year.

As far as rent,if I were to rent it,currently I get $450 monthly.Average house rentals in the area for a decent house run around $850 but this is a property that I would more than likely want to stay in.

Just trying to kick around some ideas,would hate to have to demolish the house.Thought this might be a good alternative.

Appreciate the comments

I would venture to guess, assuming no municipal restrictions on rebuilding, you'd be better off (and it'd be quicker to) tear it down and rebuild. I guess the only thing you are saving by doing your method is the new roof. But, you are going to be stuck with the slab plumbing and limitations of integrating into an old, rotten, sideways house building from within.

That is an interesting option and I did consider it but think the cost would be much greater,all new framing,roof trusses,sheathing,shingles,all new fixtures plus the cost of demo I would imagine running close to 10k just for that.

You are not going to be dollars ahead by renovating. The ONLY thing you are "saving" is a memory. Take a picture.

Get the bulldozer. If you can DIY all that you are contemplating, and I am skeptical of that, then adding in the demo shouldn't be a stretch. The biggest mistake most people make is over assessing their DIY abilities, and underestimating the time and sheer amount of grunt work that is needed. Especially for someone "semi-retired". It'd be hard on even a young guy.

Either get out of the slumlord business and demolish the house entirely, or build a new rental after the demo. The tax breaks lean towards new construction. Even if you finance it and someone else does it. Talk to your accountant.

We've done this on our home, we planned on a a full gut,not necessarily a full "rebuild". Due to the neglect/lack of upkeep on the house, we've hand to fully replace most of the floor joists and about half the exterior walls (for an addition and due to lack of space for insulation).

We are on year 3, I'd estimate we still have another 2 to 3 years left without touching the landscaping/hardscapes (kitchen, one bedroom, LR, redoing remainder of siding and roof ) Honestly I don't know if I would do it again. My husband and I are in our 20s and also have access to family friends who have been in the biz for a while. I am consistently prey to underestimating the amount of work involved, just the sheer amount of energy to move all the materials from the building supply store into your home etc.

Based on our spending thus far, I'd say your estimates aren't far off, maybe a bit higher if you have more expensive taste in finishes.

ill be honest there's times I wish our house had burned down, but for us this was the only way to afford the house we wanted, as we've been paying as we go on materials, since the mortgage was only marginally higher than our apt rent.

Id say it definitely can be done, but there are times two sets of hands are necessary. I'd also say budget for if someone professional was going to do the entire job, what if you become sick or injured halfway through?

Putting $40k + labor into a house that's only worth $40k - no way. It's a tear down.

I know this is old, but what did you decide on this? I have a similar kit home that I'm thinking of reframing the exterior walls with metal studs, or adding furring strips.