Inspection Done - Look for advices on this house

[Anne W.]

**This is cross posted since more foot traffic here**

Hello BP,

I am here to soliciting your input and thank you! Looking for a 2nd rental. Inspection done today. I am on the fence.

- Location: Old neighborhood, up and coming. 6 houses to an elementary school ( 7/10 per Greatschool.org). Within a mile, there's a high school (6/10), sports field, community rec center, swimming pool, police station and fire station. Also with in a mile to major turnpikes.

- House: 50's brick ranch, builder grade everything. 3 bedroom, 3 bath but only one shower. There's a space for adding a shower.

- Inspection issues: 1) the cement on the side of the house and back patio. big crack, 3 inches lower than its original place. The settling force tilted the basement window well. to repour the cement and fix the grading, about $20K

2) original insulation(disgusting), original electrical (need various repair), original plumbing, sewer line needs work (clay and cast iron). New roof.

3) Finished basement. Lead paint is one basement bedroom. About 400 sqft basement ceiling has asbestos. The entire 1200 sqft basement floor has asbestos but encapsulated. Faux wood paneling in the entire basement and one room at the main level. Not sure what's behind the faux wood.

4) no dishwasher in the kitchen, no hook-up.

My concern: the market is crazy, we paid the market price for this one, not a deal. This is "as is", so can't negotiate price for inspection results. I don't think I have a deal, but I don't think I can get a deal in this market, either. The inspector is very familiar with the neighborhood and he said the overall condition of this one is 3.5/5. 

What should I fix before I can rent it out? Is this property too high-maintenance for a rental?

[Joe Villeneuve]

This is a terrible house for a rental.  Based on the problems you have, and the costs associated with them, you are never going to CF, your cost will be tremendously high, and it will probably take 30 years before your CF (if you have any) will recover your costs...sorry.

IS there anyway you can get out of this deal?...and when you say "you don't think you can get a deal in this market", that tells you don't invest in that market...NOT to take any property you can get.  An investor collects money, not properties.  The goal is ALWAYS to get a deal, and NOT just accept the best that comes along.  You'll go broke very, very fast that way.