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Corktown new builds vs. rehabbing old stock, which one actually pencils out?
I ran numbers on a 12-unit project in Corktown last week, new construction came in at $285 a foot while the rehab down the street was closer to $175 but with 8 months of permit headaches and unknown surprises. Am I crazy for thinking the old building wins once you factor in the tax abatements, or has anyone here been burned by hidden costs that blew up the whole budget?
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cora86329d ago
Ugh, that permit timeline is the silent killer, right? I did a similar comparison a few years back and the rehab wins if you lock in the abatement early, but only if you budget 20% extra for the nasty stuff like bad plumbing or hidden rot. Yeah, the new build costs more upfront, but honestly, the old place still pencils out better if you can handle the stress and have a solid GC who knows the inspectors.
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