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Updated over 6 years ago,
What to do with home tenant destroyed?
We have a home in Mount Pocono, PA that is around 2400 sq ft, 3 bedroom, 2.5 baths. Tenants lived in there for about 14 years before moving out last month. The rent it was bringing in was $1450 per month.
Unfortunately this is a long distance rental so we broke rule #1 of being a landlord and depended on a 3rd party to provide us with updates on the property's condition. Well when we finally saw it first-hand it was far worse than what we had been told.
The tenant was allowed one cat and when we arrived there were at least 10 of them. We expected some carpet damage and that a repaint would be needed but in reality the wood floors are destroyed, windows need replacing, all carpets need to be replaced, cabinets require replacing or refinishing, and the grounds need landscaping.
Originally our plan was to fix this home and sell it. Realtor tells us comps go for around $160k but we still owe money on this home and we're probably looking at $20k-$30k in repairs. Since we can't oversee any renovations I'm wondering what our options might be here? Is lease/purchase still something that is done now? Are investors willing to take on a project like this when we still have a mortgage on the property? If so how do we find any interested parties?