Bad Deal—Help for 1st Investment

[Turner Wright]

My first RE investment may be a bad investment, according, to two realtors who specialize in the market area. I estimated an ARV of $310k after rehab, but they say I will be lucky to get $275-285k. Below are the details:

PurchasePrice: $177k

Cash to Closing: $22k

Rehab Budget: $60k

Interest Rate: 11.25%, 12-month term, interest only

Monthly Payment: $1,659-$2,175 per budget used

Both realtors are advising me to rent the house to minimize my losses, but I’ll lose about $200-300 per month with a max $1,550 rent. So, I have considered the following options:

1) Sell as-is and take my losses (approx. 30k)

2) Full remodel and get what I can for it

3) Mid-level remodel and get what I can

4) Rent out and eat cost, little by little

* Will prevent me from buying another property

for a while

5) Owner/Seller finance

* As-Is and at cost, or

* After mid or full rehab

6) Lease Option

* As-Is and at cost, or

* After mid or full rehab

I want to ask experienced and creative investors out there for their help in minimizing my losses. What do you suggest? What would you do? Thanks in advance!