tear down/construct a new home or remodel in Sharpstown? (Howe: rent, neighborhood)

[philopower]

So we have a family home in Sharpstown that we bought for less than 100k and is now valued over 140k. Lots in the neighborhood are selling for 120k. The home needs a lot of work; it's a 1500 SF ranch home built in 1955. It needs a new ac, the kitchen is horrendous, the single bathroom is terrible, the roof will need to be replaced, the foundation is in questionable shape. However, the house is salvageable but fixing it will cost a pretty penny.

The neighborhood is booming at the moment and my family can pool the resources to build new. How should one determine whether to tear down or remodel? What's the proper formula? Will Harvey be driving up construction costs?

[hendersj31]

What do you plan to do with the finished home? Live in it? Rent it out?

Originally Posted by philopower

So we have a family home in Sharpstown that we bought for less than 100k. It needs a lot of work; it's a 1500 SF ranch home built in 1955. It needs a new ac, the kitchen is horrendous, the single bathroom is terrible, the roof will need to be replaced, the foundation is in questionable shape. However, the house is salvageable but fixing it will cost a pretty penny.

The neighborhood is booming at the moment and my family can pool the resources to build new. How should one determine whether to tear down or remodel? What's the proper formula?

[philopower]

Originally Posted by hendersj31

What do you plan to do with the finished home? Live in it? Rent it out?

We'll live in it and once my parents are no longer with us then we'll sell.

[hendersj31]

I would run the numbers and see what makes more sense. I'd be mostly concerned with pricing yourself out of the neighborhood if you plan on selling relatively soon.