Trash or treasure?... locked up since 1985 this could be the ugliest thing i've ever seen! what do you think?

[Nicholas Miller]

It was like walking though a time capsule only with mold and piles of what might be trash or could be treasure.  This home has not been lived in since 1985 and the owner wants $5k  to walk away.  I have good reason to believe the owner will take less but I am not sure what price I can justify for the risk.

3 Bed 1 Bath SFH 1,536 sq ft. ARV is difficult to calculate in this area but it will make a strong rental at $630 per month +/- 12%. Assessed value (is wrong) at $45,000 and taxes are $1,110 per year (I can get them lowered but it would take 12 to 18 months from the time of closing to go into effect)

Title is clean however there is a code violation for $350 against the property. 

The home will need foundation work

new plumbing

a new furnace

new water heater

new insulation 

massive cosmetics

I am worried about the water line coming into the house and the swer line going out of the house since it has been vacant for nearly 30 years and what surprises might be buried.  On a positive note the house went to tax sale a few years ago and received a bid of $24,000 however the bidder redeemed the taxes to keep the overage...  Great news for the owner....  However I am sure they would have preferred the cash rather than the $3k of taxes paid by someone else.

Here is a video of my walk-through

What are your thoughts?

[Nicholas Miller]

@George Sarianos the house is in a good rental area however flipping the property is not the ideal exit strategy.  On my way to the home there were several "auction" signs which I see as an indication that buyers in this area are primarily cash investors at rock bottom prices and not owner occupants.  The exit strategies I could see for the home would be a 

1. wholesale flip to my local REI once the trash is removed and the foundation is fixed (I don't like the margin),

2. long term hold as a rental at $630 a month

3. Fix the foundation, button up the outside and let it go to tax sale in 2 years and gamble on the overage.  Cost would be minimal and the return would not be calculable however considering it sold for $24,000 before that could be the highest return on investment if the price dropped to $1,000.

The video was shot with a Sony Action Cam...  $250, it lets me review properties once I am away, does great in low light and has great audio so taking notes on location is a breeze.