OLD UGLY DUPlex. Money Pit or Possible Deal

[Ed L.]

I was browsing on Craigslist over the weekend and a fella posted ad for a duplex in the Historic District.

He was very forthcoming about the property. His Ad said OLD ugly duplex needing a total renovation. Asking Price $9,900....

I love cheap stuff so I went by just out of curiosity. My wife was whining and it was hot out so I didn't even bother getting out. The front porch looked like it was ready to fall off. I assumed the foundation was probably infested with termites so I didn't make any further attempts to inspecting the house.

This morning my home inspector who also has rental houses called me up about a great deal he saw on Craigslist. He said the house looked solid but the porch would need a complete tear off and replacement. He said it was too much for him to swing at the moment.

Based on his analysis I called the owner up to see the inside this evening.

I was pretty surprised to find the interior was solid. Original Wood floors were in great shape. The Layout is very functional usable.

Foundation was shockingly level for a 100yr old house. One sag in front of a fireplace visible in the Photos.

The roof is leaking in several locations.

Apparently the house originally had 11-12' ceilings. At some point they did a drop down ceiling to about 9'. The suspended ceiling had collapsed in a couple places and the original ceiling looked to be in good shape. Looked like T&G wood ceilings.

The Units each have 1Br., Living Room, Kitchen, Full Bath, and another living area. They should rent out for 450-500 each once the place is renovated. It's on a really nice historic district street. I guess it would be called a transitional neighborhood.

The Owner said that it is in the Historic Registry and the renovations would qualify for up to 50% tax credit??? That would greatly help bring it back to life.

My questions is...

I'm wanting to see what you all think the following Repairs would Cost.

1) Replacing the Front Porch
2) Replacing the Roof (House is 1,600 sq/ft total) Felt alot bigger.
3) Interior Gut Down & Re-sheetrock.

If I were able to put 50K in Renovating the place + 9K Purchase price it would probably bring 100-120K on the retail market.

The Tax Credits could sweeten the Deal. But I Hate to base anything off government funding at this time.