Keep making payments and try to sell or tax foreclose?

[Nicholas V.]

Hello All and thanks for taking the time to read and post,

I am 23, have been a real estate investor for 4.5 years. With many life changes, I have owned 7 properties, sold a few to invest in other businesses, and tax foreclosed on one (long story, horrible condition, still made money). I've gained a ton of experience, and dealt with a lot along with working to eek out a living. Now onto the important stuff:

The first home I bought was a bank foreclosure. I paid $6k cash for it, rented it out for a few years and made at least double my money back. After the last tenants moved out, I decided to move into it with my wife. We made it home, adding chandeliers, new carpet, jetted tub, etc.

I should have been more responsible and payed the property taxes as they came out, but allowed myself to get behind since 2011 to the tune of now more than $4k for 3 years, choosing to invest that money instead. When the time to pay hit this year, I had the money to pay, but was able to receive an extension and make payments (approx $330/mo) because of living there.

Other than the taxes, I own the home free and clear. The neighborhood seemed reasonably solid when I bought it, but has since been in decline (drug dealing, gang activity, fights in the street, speeding cars with loud stereos). My immediate neighbors are all long time homeowners, except for the troubled rental property next door.

Adding to this, the local code enforcement has been on all the homeowners to repair their properties. Mine needs a new roof. It is a gambrel style roof, and 3 stories high in the back. I would expect the replacement cost to be $10k+.

My wife and I have moved out, deciding it is not worth the cost to stay there. So now we have two options:

1.) Keep making the payments and try to sell it on a land contract. I would estimate the sale price to be around $20k to the right buyer (someone who wants to occupy it and has a cheaper option to fix the roof). I think it will be difficult with the current next door tenants, who yell all day, play music loud with windows open, smoke weed on their porch, and often go outside to shout rap songs (badly). If they were gone, I think the house would be a pretty easy sell. This would represent a monthly income of several hundred dollars for the next few years. I have sold other houses like this in need of more work, but in better areas.

2.) Remove the fixtures and improvements (as far as I know this is legal as I do not have a mortgage on the house) and let it tax foreclose. This would alleviate a huge (1800 sq ft, + $326/ Mo, $4000 tax) burden and the materials would be worth a few thousand. The downside to this is, no monthly income thereafter, and complete loss of the asset.

What would you do? Thanks in advance...I know I can be a bit wordy ?