Inheriting a run down house with about $60k in equity.

[Garrett Ennis]

Once my father passes I will be the executor and beneficiary of the will. I'm an only child and I used Legalzoom to draw up a last will and testament. We had it notarized and everything so it is a legally binding document. I'm trying to decide what I should do with the property once he passes. Should I A) Sell everything inside that I don't want and use the proceeds to rehab and rent out or sell, B) Sell as is and use that money to buy into another property with a loan from bank or lender, C) Neither, and just sell everything I don't want and use it as my residence. 

The unique thing about this house is that my dad had used a government housing assistance to buy it. With that said, if I were to inherit the house there is nothing owed. But if I do decide to sell or refinance it there is about $25k that is owed back to the government housing entity. Not sure if I would get much money back if I were to rehab the place because it needs a lot of work inside and out.