This house is so gross it makes me sick...

[Nicholas Field]

I bought a house 2 years ago from a friend in Squamish, BC. for $490,000. 1100sq ft 3/1. Nice yard.  He continued to live in it until we completed a nearby development project, which was just completed yesterday.  He moved out, and I took some of my stuff out of storage and moved it in. I'm renting out a couple rooms for the winter season to a couple friends, while I figure out what I want to do with it. (I live in Las Vegas). 

I'm here now writing this. My friends are in the other two bedrooms. My wife and toddler are visiting the inlaws.

These are my options...

1. Acquire an adjacent lot and develop 6 or 7 townhomes. Easier said than done, could be years, or impossible and after everything, my profit will be about 4 - 500,000. 

2. Develop in into a duplex or triplex. After everything, profits will be about 300,000 if I'm lucky. 

3. Sell as is, I'd have about $350,000 profit. 

4. Make it my home. 

Now, my wife wants to make it the home, but it's small and old. I've never done a full on rehab floor to ceiling. Wiring. Furnace. Breaking down walls. Installing a bathrooms. But that's what it would take to make it decent. 

Any insight? 

I was able to refinance and pull out $225,000 which I've been able to reinvest on other projects already. 

Just look at this sexy paint job. Makes me want to puke. 

[Brian Pulaski]

That is what you call gross? You should visit some of the house I have been in... :D

With that said, looking at your numbers, why would you not sell as is? $350,000 profit in a few weeks, verse develop and make $300,000 if your lucky, or try for years to buy other property and make it townhouses for $4-500,000.

The final option of moving in, is this where you want/plan to live forever? If you don't move in, do you have to buy a house in the area anyway? If you do, and an 1100 sf 3/1 that needs work is an $840,000 house, what kind of money will it take to buy a nice, larger house? I would entertain the moving in, assuming the housing market out there is insanely expensive.