Continue to rehab property or cut my losses

[Stacy Kodani]

I recently purchased a property in Northeast Kansas City.   Up to this point, accrued costs are approximately at $9,000.00 (purchase, closing, back taxes, liens, etc.).  The home requires a major rehab.  Costs will likely be anywhere from $40,000 - $50,000, but possibly higher.  Once completed, rents in the area range anywhere from $650 - $850.  I was told by a friend (also an investor) that the after repaired value will likely be $60,000 - $65,000.00.  

At the same time though, I was told by a property manager in the area that it might be in my best interest to cut my losses and try to sell the property.  His reasoning for this is there is one home across the street and one home two doors down that are boarded up.  He feels that boarded up houses are unlikely to draw the type of tenants or the prices that will make it worth the investment.  

Any advice on a path forward would be greatly appreciated.  Best to try to sell the property before I put too much into it?  Best to move forward with the rehab?  Lastly, would you recommend trying to pickup the properties in the area that are also in need of rehabilitation and working on improving the block?