"Free" house thrown into deal

[Dennis Tierney]

So I'm not sure how this is going to turn out but we have a property under contract to close at the end of the month that is a 10 unit and an 8 unit a block from each other in a small town (3,400) and the seller was so motivated he didn't charge us for a 1,000 sq ft. house that is on the 8 unit property. The good news is that it has a roof, siding and furnace that are in good shape. The bad news is it'll need new flooring, kitchen and bathroom as well as doors and windows. The current tenant is being evicted by the seller so we will take over with it empty. This is new territory for me as I've only done multifamily till now and never done a house rehab. The management company is going to estimate the rehab cost so don't know yet if it'll be worth it to keep and rent or try to flip.