Help! Tenant destroyed property and need to prioritize repairs

[Bobby Balow]

The situation:
We very recently purchased a property based on a home inspection that was currently occupied by a tenant. Turns out there was a LOT of hidden damage. From what I understand, there is little we can do because the tenants lease had expired with the previous property management company and they refused to sign with a new one. Upon moving out, the house was vandalized (door kicked in) and some appliances were taken. We are $5 under our deductible for our insurance.

How to prioritize?
This is the first property that we will be renovating remotely. I never owned a property this damaged and I'm not quite sure what is the best way to approach this.

• 1. Some outlets don't hold the plug anymore and others aren't properly grounded
• 2. Some kitchen cabinets have water damage and are stained (see picture)
• 3. Bathroom vanities show water damage
• 4. Many doors show damage/mismatch throughout the house
• 5. A few windows do not open and are missing protective coverings for the opening mechanisms
• 6. Missing transition pieces throughout the home, air register covers rusty/don't completely cover opening
• 7. Furnace is quite old and will likely need to be replaced in the next year or two
• 8. Vinyl flooring in kitchen has lots of burn holes and black paint/stains all over
• 9. Some structural issues also need attention (sistering 3 joists in floor due to old termite damage - no active termites)
• 10. Front porch is missing several spindles and handrails need securing. The plan:

We have a rehab budget, but I'm very concerned we will not have enough to get it to "modern rental standards". Our plan was to clean/paint the entire interior of the house, replace the bathroom vanities, and add transition pieces and registers throughout to try to give it a cleaner, more consistent look. Our property management says we probably want to replace all the kitchen cabinets. Is this excessive at this point? We want to attract better clients to the property.

Location:
This is in a C+/B- area in Lafayette, IN relatively close to a large university (although, we aren't sure if students will be looking to live in this area).

Suggestions on durable flooring/vanities/cabinets/paint that will hide damaged walls, and suggestions on what repairs are necessary to attract better tenants would be greatly appreciated. I hope we can turn this around without going broke!

[Marcus F.]

Bobby,

I also have property in Lafayette, is this in the downtown area? Are you local or managing repairs from a distance? Has your PM made specific recommendations to maximize rent for the area and grade property?  If so that should determine fixture level/price. 

Electrical, many of the older homes in the downtown area do not have grounded wiring. Is that case here? Have You had any experience with that? If that is the case you can install GFCI outlets in every drop, or rewire the whole house 3-5k for that area. GFCI outlets are Inexpensive by comparison, having said that, house wiring has a estimated life span, where is yours at?

Joist are very simple to sister, provided the sill plate and rim joist are solid. 

Is this your only property in Lafayette? I would like to know how this turns out and what your experience is in the neighborhood your in. Feel free to send me message here BP.

Also, I can tell you who I use for repairs, Property management, and inspection(most important).