Rehab Poll - What would you do? 700 SQFT House on 1/2 acre lot

[Tyler H.]

I have a client that acquired a 700 Sqft House on a 1/2 acre lot for about $100K. The house needs a "complete rehab", however "small" it is currently.... Originally 2+1, but the 2 rooms were so small the wall was knocked down to make 1 big bedroom. Roof + Foundation OK, needs complete interior rehab.

We were brainstorming on ideas on what to do with the property.... The house is small for the area, and the lot large (and desirable) for the area. Here are some thoughts we had... What do you think? 

Flip As-Is - Probably worth $140K - Estimated 40K Profit

ReHab leaving same size - $20K rehab, sell for $180K. - Estimated 60K Profit

Small addition of say 2 beds + bath (800 Sqft) - Costs undetermined - ARV Mid 200's

Obviously each step requires a bit more work, but the profit also increases as well. Looking for any ideas, thoughts, suggestions. I dont need any specific critique.... These are general ideas and not business plans! This is in LA County if that helps.

Thanks in advance!