Case Study - Newbies/Oldies, What would you do?

[Rocky V.]

Here is one of my own deals for those looking at getting started. I just closed this one out last week.

Case Study –

Received a motivated seller lead from Facebook. Property details:1600 sqft, 3 beds, 2 baths, 2 car garage, 1974 built, corner lot. Rehab needed for rental – need to finish previous work started by owner, finish tile countertops, finish trim, install flooring in 3 bedrooms and kitchen, replace broken glass on 1 window, paint interior, install new door to closet, paint exterior, repair exterior wood rot, install new dishwasher, install new oven, install new microwave, clean/clean/clean (pets urinated throughout home). Estimate based on pics $8K

Property is located about 8 hrs from where I live but is located in same area as my parents. My father is a master plumber and very handy, I can utilize his service to GC project.

Numbers:

Amount Owed - $66K

“As-is” Value - $70K

ARV - $85-90K

Payments - $668 PITI

Market Rent - $1K

Owner owes approximately $56K on first and $10K on second. 30 Year Note with a maturity date of 2035. Here are pics of home.

WHAT WOULD YOU DO?

[Rick H.]

It's not an equity play nor do you add much value for rehab. It's not a debt play as I'm presuming loans are conventional. 

The asset play is minimal current opportunity. An appreciation play? It's not is Austin so it's the wrong part of Texas. This is what accountants refer to as FIST: First in, still there.

I'm not feeling it