What do this with this property?

[Robert M.]

I am new to biggerpockets and have been learning a tremendous amount from this site. I just came upon a property which I need advice from the mastermind group (you guys).

Question

A relative purchased this property on eBay.

908 Clay Ave, Toledo, OH 43608 for $3,500.

My relative is from California yet the property is in Ohio so managing it is a problem and has had a change of heart and wants to get rid of it now. I am in the process of starting my wholesale business started and thought because of the price I could do a quick wholesale assignment for a small fee $500-$1500 just to get my feet wet . I researched the property online to get comps and got an ARV estimate of about 17.5k and similar homes rent for $500/month.

We had someone go out to the property to give us a repair estimate of about $31,301!!!

The main items on the estimate are:

• New roof
• Clean out trash (excessive)
• Back porch concrete decks needs to be replaced
• Replace all kitchen cabinets/sink/faucet/countertop
• Replace bathroom cabines
• New how water tank
• New paint/carpet/tile
• Fix broken/loose trim and paneling
• Replace hot/cold water lines to the main tank
• Kitchen/bathroom drains need to be repaired/replaced
• New furnace
• Fix broken windows
• Replace fascia and missing soffit on front porch

I am now scratching my head not knowing what to do with this property. I can't wholesale it to another investor, flipping it would make me lose money. This property is free and clear but I am unsure of what exit strategy to recommend to my ailing relative.

[Matt Devincenzo]

Robert there is such a thing as a NEFF property. (especially in areas like Ohio where replacement cost can be significantly more than livable homes can be purchased for) And NEFF stands for Not Even For Free, your relative's best bet my be to see if they can give it away to a charity, but honestly most of them know better because they can't really do much with it either. Sry but if I were you I'd tell your relative that you can't help them but wish them the best of luck and this is one of those education costs in the school of hard knocks.