I'll throw in a few more things to consider:Property Assessment:Structural Engineer Evaluation: Before proceeding, hire a structural engineer to assess the extent of the damage.

So any insight on this would be greatly appreciated.How are properties assessed for property tax?

After thorough research and initial assessments, I estimate the rehabilitation costs to be approximately $250,000. 

You also have the possibility of getting hit with special assessments over the years... these assessments can often be in the thousands of dollars.

I will probably build on top of that to make it more compatible with what I am trying to accomplish as I move forward.

Consider whether you aim to build a substantial real estate portfolio for ongoing income or diversify investments over time.Risk Management: Assess risks associated with property ownership, including vacancies, maintenance costs, and market fluctuations.Risk Management: Assess risks such as vacancies, maintenance costs, and market fluctuations associated with owning multiple properties.Tax Planning: Work closely with a tax professional to develop a balanced strategy that maximizes current income offset with depreciation, while planning for depreciation recapture and optimizing use of 1031 exchanges.

.- **Risk Management**: Assess the risk of cross-collateralization and ensure you have contingency plans in place for potential property underperformance.- **Alternative Strategies**: Continuing with delayed lending (refinancing after repairs and tenant placement) has its merits, allowing you to build equity and stabilize cash flow property by property.Please feel free to DM me.

Overall, Dan H's assessment is probably correct today.

I'd be glad to take a look at your system and give you an honest assessment. 

Evaluate and Negotiate: Assess property value and financials.