Newbie--->My first REO deal : What would you do with it?

[Sergio B.]

So finally i started 2013 by deciding to invest in the real state market. This are the details of the property.

3/2, 1000 sq ft living area , 7500 sq. ft lot...REO owned by the bank, it was being sold at 64K with a note on MLS saying "This property is being occupied w/former owner. Do not disturb them at any time. The listing agent may or may not have information concerning the former owners"

After reading on BP another forum with someone with the same situation, I decided to knock in the door with a gift card (BP advice ) . Tenant was nice gave me a lot of info, they pay rent to a management company and house is in OK condition ( she let me inspect only the outside) . So i called my realtor she was surprise i was able to get in, no other people was ble to see the property. Listing agent says bank will lower price to 59K since they had been no offers ( because of the above situation ) long stoy short bank accepted a 53K offer we sent, now we are waiting for the county certificate of occupancy ( all REO sales require COO in Miami Dade County).

Deal is all cash , will be be closing in the next couple of weeks.

Tenant has expressed interest in keep renting (rent is 1K monthly). She was renting previously from former owner and now from REO management company.

What would you do with this property? Flip? Hold and rent?

I was thinking in also in build a inlaws quarter and rent both, any insights?

Thanks!!!