I've got a 60's three bedder that I've had for 20 years . It's in reasonable nick but very dated. For quite a while I've been trying to figure out whether to reno and extend or knock it down . I figure that it would be a little cheaper to reno however it would be a bit of a compromise compared to a new house.
The returns I would get for doing the work doesn't stack up either .
The conclusion I came to is it's better to maintain it and just keep renting it out . That way , the money I would've spent can be spent on a couple of more houses thus increasing my leverage and therefore my returns over time.
Of course , if I was a builder and able to do the work myself , the reno numbers might work out better.
