If the replacement cost is $150k/sf, then don't tear down the house and rebuild it.Also, if I can buy the property for $50k, I will cash flow much higher than someone that bought that same house in a market where they cost $225k.There are three very important reasons why the entire position of "no buying $50k houses" is wrong:1 - The original statement is a casserole of entrance and exit strategies which don't go together.  

I inherited four tenants on 4plex, rented the attic as an art studio. 3 units share a common entrance. 

It needs road repair about $7-9,000.00 (depending on fill/gravel, speed bumps), new entrance , landscaping, school bus/ mail box covered area $8-9,000.00, upgrade electric boxes and poles $12,000.00, add city water $3,000.00, new pumps for sewage plant $3,000.00.  

Most of my properties are 100 plus years old and have numerous bug "entrances" but minimal issues.

Hi @Liz Weiss - I live in the Honolulu area just outside the entrance to Waikiki and I can tell you this market is tough to make any return. 

The smallest building is 340 with its kitchen, bathroom, living area, and entrance but it's like sardines in a can.

So on a showing---how is the parking, how are the entrances configured, the utilities metered, own laundry.

If she wants to stay in the same area there are high rises nearby which have a 24 hour concierge and a secure entrance.  

I would like advice on what steps to take next.I purchased a single family in March 2019 thru FHA to what I thought was a good deal. 3 BR 1 1/2 bath full basement, separate entrance, sizeable enough to rent or Airbnb.

1 - Use the collected DP money you have now to buy a rental using a Land Contract entrance strategy.2 - Rent the house for positive cash flow3 - Take on a Cash Partner after the fact, that pays you your LC Deposit back (and then some).