Question on rehab on first property before selling

[Pramod Prasad]

Hi BP members, 

I have appreciated the help that I have received from this forum as I go through my horror story of issues at my first house purchase. After a one year long eviction process my tenants left the house fairly vandalized. Now my insurance does not cover most of the damages - it covers maybe 25% which includes only the big ticket items - appliance, water heater and hvac. 

I have decided to sell the property (at a loss - it's been a bad investment and I'd rather get out than handle more headaches here) but only do the repairs that are covered by insurance (around $10K) so that I can get some of this value back. When the work started the contractor noted that the electrical can and mast are also broken and need to be fixed before there can be any electricity in the house - this is another $4K expense. My question to the forum is: will i lose value in a sale if I do not fix the mast and can (so basically no electricity in the house) but only install the new items - how will a buyer perceive this? (the buyer will likely be a investor or wholesaler and additional rehabs needs to be done before you can put a tenant here). 

Please DM me or respond here. Appreciate any help in navigating this situation. 

[Jeremy Taggart]

@Pramod Prasad If you know for sure the property isn't in good enough condition to attract an owner occupant or conventional loan buyer then I wouldn't worry about it. An investor is just going to factor it into their rehab number. If the electrical would get it in good enough condition to qualify for conventional financing then it might be worth it since you can likely get a bit higher price in that situation.