BRRRR - should I Demo or Rehab?

[Chris C.]

I'm working on my second BRRRR. The first BRRRR was successful, I pulled out more money than i put into it. My 2nd BRRRR, has two buildings. Front building is a duplex which I have already rehabbed it and have tenants placed in each unit. The rear Building is a single family and needs a ton of work. Needs foundation, all new electrical & plumbing, siding, roof, etc. Going into to it I knew I might have to Demo it. I bought both properties all cash for $55k, I put $25k in front building and I estimated $100k in rear building. I've been trying to get firm quotes on the rear building and its been very difficult to get someone over there. In conjunction, I've had a few people quote to Demo the rear building. Which I was told by 1st contractor that the siding and the drywall on the first floor is asbestos. The
contractor  said he quoted the demo to the previous owner.  Which was never disclosed to me when i bought it.  Anyway,  the cost to demo it cost is $14k and to abatement the asbestos its $11k.  

If I demo rear building, I would be all in at $110k. I believe house will appraise at $130k.  which at 70% loan to value I cash flow $225/mnth at cash on cash return 11% and I would have to leave in $26k in the deal. Return on Investment is 9.6 yrs

If I try to fix it up rear building,  which scares me because I'm having trouble to getting contractors there and i will waste time and money and project won't get done.  It would appraise for more approx. $160k. Which at 70% loan to value I cash flow $725/mnth at cash on cash return 11%.  But i would have to leave in $75k in the deal.  Return on Investment is 8.6 yrs

I'm leaning towards demo the rear building and getting my money out to buy another BRRRR.

Any thoughts would be greatly appreciated what I should do. 

Thanks

Chris