Options other than gut rehab or just sell

[Steven Haskins]

I own a condo which I have a mortgage and a 2-family rental property which I have a mortgage. I live in the condo and do not want to sell. The 2-family property needs a serious rehab and not rented. It is in a desirable area. I owe 55k on the 2-family and $65k on the condo. If I attempt my first gut rehab I could rent the 2-family out at $1000 per unit. If I do a rehab and convert to a single family I could sell for around $280k-$320k. It would be nice to keep the rental and get the monthly income. I have a few questions. Since I have 2 properties and two loans I am financially extended and I cannot get a loan for a complete rehab at around $120k. I would like to buy a house and keep both my present properties as rentals. I need advice on how to accomplish this task. I spoke to a realtor today and she said the comps are that the rental property as is sells for around $70k-$85k. This is not enough money for me since I would also like to pay off my condo to maximize my rental income. What is the best option for me to try and rehab the 2-family to keep it. Or get cash for a gut rehab to sell the building as a single family? Is there a partial rehab in which I could gut both units in the 2-family and have the electrical contractor do one or two rooms at a time since I will have to pay out of pocket? Maybe do my own drywall and solely work on just the 2nd floor unit? I am just trying to evaluate options to keep the low monthly payments and at the same time update the building to keep it. The plumbing and roof is good the electrical has knob and tube wiring this is why I was told to gut the whole building. I need to determine the best feasible way to reach my goal for my situation. I am in a tough situation and not for sure how to handle. I am leaning toward gutting the whole building and letting the electrical contractor on work on the 2nd floor unit. He said the whole building electrical is around 15k, which I do not have. So at $7500 he could wire the 2nd floor only providing that there are no additional costs. Maybe I could have him do a room or two at a time until the 2nd floor electrical is complete. The city inspector said I could do my own drywall as long as he can review it. I am just extremely nervous on other costs that i could run into. Please provide advise into this situation. Thanks.