Assuming deceased parents fixer rental house?

[Jeff VoVillia]

First, no condolences or sorry for your losses, I'm full.

Second, details.

The house is a few doors down from my mother. My Dad bought it to rent out and in the last few years, barely hung onto it and let it deteriorate pretty badly. It's been empty for over a year, maybe 2. I just learned he owes 55k on this 2 bed, 1 bath house that's about 1000 sq ft. Rent for a decent similar place in the area would be around $800-$1000.

Repairs:

My Dad was eccentric and I'm certain there are many code violations. The main piece I know of is the water main has been broken for months and he couldn't afford the $6k quoted to fix it. I'm also certain the house needs a bug bomb and might have foundation issues. Most of the "custom" alterations will simply need gutted and redone properly. A near total rehaul.

I'm wondering if I just unload it and save myself the headache and stress, or get it done to add to my portfolio?

My situation:

First house purchased in Colorado. House hacked it and last spring was able to "save" my wife's family lake house in northern Michigan from the public market... Barely approved. Planned to move this fall but with my Dad's death decided to move now.

So, although I was maxed out with the lake house purchase, once moved I'll have about $800/month generated from Colorado. My wife and I are still working but with COVID and now my father's death, my income has dropped about 60%. I'm not sure how much more it'll be affected with the move but I'm able to work from home.

So, it'll be a hell of a lot more comfortable not taking on a 3rd house, especially given the work, legal and other complications.

But do we get bigger pockets staying comfortable?

I'm also wondering if the rest of my Dad's assets may be able to go towards those house repairs and mortgage? I'm sure my mom would rather not have the headache but I already have some experience being a landlord (screening, leases etc), so it really would not fall on her. I'd rather her get some passive income from this rather than a quick lump sum.

Thoughts?