How much should we pay for this house?

[David T.]

Hey Y'all! (Think of an Irishman with a bad Southern accent and smile :)

We have a deal rolling on a property in the 'hood. Close to the Atlanta GA dome, it's on the "wrong" side of the I20 (South), but west of the I85 in a neighborhood that has some rehabs going on, but days on market are running to months and Sellers have to hold out for buyers to get their prices. So it's a fairly tough market.

It's c.1,100 s.f. 3 Bedroom/1 Bathroom on a large lot, has a full basement and converted attic. Also has a downstairs workshop converted 1 car garage to the side. The 3rd Bedroom is actually a den/office.

Plumbing, HVAC and electrical have already been stripped out, the locals are helpful like that ;). Kitchen and bathroom refit also required. Roof seems to be in good shape with no dampness in the house. Property could be made habitable for around $12k (will rent for about $700 per month) or a full rehab at $25k to sell at $79k, probably to a FHA buyer. This area will most likely come back up over the next few years and has already been about 50% rehabbed. We comped just two other fixer uppers available in the area on offer at $45k Some rehabs a few blocks south are currently offered at $160k plus.

So what you guys think? What would you pay for this opportunity? Would you rent it for a few years and wait for the market to rise or would you sell it on immediately?

Thanks so much in advance for your kind consideration....