Duplex Meth Tenant Aftermath...

[John Acheson]

TARGET is a small Duplex in a gold mining town,
pretty insulated from Wall Street/Recession,
if gold price is strong through crash.

It has two 2 bed 1 bath units built in 70s
estimated at $800-1000/mo. est. mkt.
and maybe $250K+ after rehab.
less ONLY a grand property taxes,
FREE and CLEAR TODAY!

THE PROBLEM is that is was trashed by tenant,
we had to evict, cops know about him, menace,
tenant stole appliances, punched holes in the wall,
smoked drugs, potential buyer did a Meth test and it failed,
invoice says $12K in repairs PLUS appliances, damage, etc.

WHAT would you do?

A) dump it for let's say $150K net after taxes vs $240K rehabbed Zestimate

B) pull cash out refi and rehab via:
B1) my wife and I rehab on the cheap $10-20K
B2) from Vegas with my agent's networkof local cheap labor maybe $20-30K

C) after rehab would you:
C1) rent it to market price
C2) and sell turn key to an investor (agent says buyers prefer duplexes vacant)
C3) or play landlord and have tenants pay off the HELOC then refi
and pull a mortgage for our primary home the reason for this deal

It seems like we could actually have tenants help pay for our primary home
(in theory but there's a lot of variables and the quality of tenants will be low income).

My goal turning 55 is buy my 1st Primary Home EVER in my life,

so taxed cash vs cash flowing borrowed cash is the conundrum.

Agent and office etc. has network of low cost repair people,

can do management at 10% if we go out of town landlord,

because due to safety, we do NOT want to go back...

THANK YOU for ANY opinions :)