Run Down First Rental Property

[Heath Aaron Quist]

Hello.

I'm looking for some advice or examples of what others have done in similar situations. 

When I first started in real estate investing I bought the cheapest triplex I could find. I have since bought what I would consider better rental properties. and I in no way regret buying this first triplex because of the lesson I have learned, specifically what I want and what I don't want. 

So, this property is in a C probably closer to a D neighborhood. Has a lot of deferred maintenance, with the biggest issue being a that the main sewer line that should really be replaced. Two units are section 8 housing. I think you understand the bad. However the property has always cash flowed and tenants don't seem really care that the house is not kept up as it matches the neighborhood. I have just come to realize over time this property is a headache.

What to do...... A few options I'm considering

Option1 Fix the property. Pros - raise rents, get better tenants, increase value. Cons - It is in still in a rough neighborhood and I may not get the return on investment plus my time and headache.

Option2 Fix the property and sale. Pros - increase sale value. Cons - Again return on investment is questionable in the neighborhood.

Option 3 Just sell it as is. Pros - not much effort.  Cons - May be leaving money on the table.