Help with vacant, no mortgage property

[Greg Shelburne]

House was rented on section 8 until it failed inspection due to crack in foundation. Tenant had to move and house was vacant. People in the area took the gutters, water heater, broke windows, etc and the house has sat for 8 years. I can't get any loan, have a steady income, can't do the work myself. People have bought the back taxes, a few code violation liens, no mortgage. I know the taxes must be paid asap. My best idea so far is to pay a guy to rehab it a room at a time. He has experience rehabbing houses in west Louisville, and that would be affordable for me (I think), at my pace (within 6mos) and steady work for him on the side. I could then rent it for decent cashflow and future income. It appraised for $80,000 in 2003. Is this a good plan and good learning experience, or should I sell it to someone for $30,000 and move on?

[Michael Seeker]

If it's not rentable, in the west end and needing rehab then $80K is very unrealistic. Are you sure you can even get $30K for it? If so, I'd cut your losses and get rid of the place.

It sounds like you might be considering throwing good money after bad. What makes you think that if it is vacant and being worked on a little bit at a time over the next 6 months that stuff won't keep getting stolen? Does it even have copper left or was that stolen as well?

I also don't get the impression that you've worked with the contractor you're referring to at all. I've run into a lot of bad contractors around Louisville - unless you have a proven track record with them, you may want to just assume the worst there as well (i.e. 2-3 times higher price once you start and 2-3 times longer timeframe).

I'm sure it can be a good rental property for somebody, I just don't see it turning out especially well for you if you've let it sit vacant for the last 8 years!