Quote from @Bryant Brislin: Land in the path of development that may seem a little far out, but your gut/intution and common sense from an urban planning perspective tells you that some day, whether it's in 10 years, 20 years, etc it will be a great long-term position for your family to have and hopefully sell at a signifcant multiple return compared to what you've paid for it.

It DOES NOT require a full gut rehab (rehab could consist of new kitchen, new bath(s), windows, flooring, paint, etc.

Also, there are more things to consider than max ROI.Most people start by picking a particular type/style of property that they like for some reason (usually a gut decision).

On another note, if your rent increase estimates are accurate, you'll bring in about $10,200 more on an annual basis (assuming you achieve the $1200 and $1350 rents) so putting in $50k in renovation just passing my gut check of getting about a 20% yield on renovation costs - not great, but not bad either. 

Thanks for the response and for confirming my gut reaction.

At the same time, I would reach out to that STR owner to try to get him to fix the nuisance issue.That said, even if you are successful in staving off the issue for now, it could come back at any time based on the current board members or on wide community support for getting rid of STRs.You could try to gather support for changing the covenants in your favor, but my gut is that that will be hard to do. 

We recently purchased a very large gutted home on a double lot across from a lake, and we could not be more excited to start the project!

Complete gut job.

Thanks for any insight or advice thanksA "Stone outer shell, Burn out" means a complete gut job.I'd suspect it will cost $40k to $50k to get it into completed status.

I just finished a total gut and rebuild of a duplex after a fire, and listed my 2 units a week and a half ago.