They are financial nightmares and very challenging to repair and replace the roof underneath.

Keep the units but turn over to a management company 8% off the top plus roughly double my normal repair budget. 

Sell, pocket $200k in equity, appreciation since they bought it, bank 25% for a new deposit in a year once they repair credit, buy two new second hand cars because they need them, pay off credit card debt, put a little extra to the side for increased rent payments for next 12 months, and reorganize to buy in 12-18 months... now they see the light, a chance to move forward, to not stress, and they're lucky the market increased so much... but if they struggle to keep it, struggle to make payments, then 10 months realize they need to sell, would they have as much equity, maybe, maybe not..  

Additionally, repair costs (if any),  all closing costs are covered by the buyer, and there is no commission!

If you take a loan out that is specifically used for a business expense, such as paying for a rental property down payment or rental repair, then the interest paid for the loan is generally tax deductible, regardless of the source.  

Pretending those are the only costs, it is about $15K just to buy and sell the home (I know there are maintenance and repairs as well as other costs).

As far as damage to wood molding I saw estimates of up to $4000 to repair...that's really high.

During the time we lived there we made some minor upgrades/repairs- renovated upstairs bathroom, replaced carpet on 1st floor with LVP flooring, added artificial turf to the backyard, replaced pool pump, and replaced the HVAC system.

Market price was at 650K, the deal might only make sense to purchase at $438,782 (Including CAPEX/Repairs funds).

A client whom wanted to sell her home but was under water due to needed repairs vs current market condition How did you finance this deal?