Problem property -- help me with strategy

[Josh Feit]

Hello BP -- I have a purpose-built duplex in 30318 (Atlanta / Grove Park) that has become a problem property.

It is very large -- almost 2700 SF with eight bedrooms and six full baths. Each side has four bedrooms and three full baths. For a long time I have rented it as a section 8 property. Tenants were very stable, and the rents were good (about $2,000 per side / 4K total).

Bought for $140K and put in about $40K over time to renovate to its current current condition. Similar properties with both sides rented have sold in the past three months for about $500K, but I think the local market has probably softened somewhat. And the vacant side doesn't help.

There's no HOA. It's on a Main Street (Perry BLVD), and it is on a bus line.

About 8 months ago, one unit went vacant, and we can't find another tenant no matter what we try or how low we go with the posted rent. I understand that a lot of units in ATL are now accepting section 8, so newer, nicer properties are taking the tenants.

Possible strategies:

-Just lower the rents to the lowest price I can find for a 4BR in Atlanta -- probably around $1200 or $1300, and get a market tenant in there.

-Convert the vacant side to a PadSplit. This would take a decent amount of investment to improve the kitchen and bathrooms. Currently the unit is rent ready, but it is very basic / utilitarian, with section 8 tenants as the main audience.

-Get rid of tenants on the other side, and renovate both sides for Padsplit.

-Sell the property and move on (but if I sell it, I imagine I need to find a tenant first to maximize the sales price...)

Does anyone have any creative ideas of what I should consider doing with this property?