In future, as opportunity presents itself, we could deal with a tear down/rebuild situation, or simply sell then.

And rebuild condo/duplex on the property and to sell down the road.

After the rebuild, the house will be over 2,500 SQFT and located in a neighborhood with $600,000+ homes. 

Ive spoke with 2 companies so far but they are coming back with insane rebuild costs.

You can pretty easily find $200 per month with routine maintenance and expenses in an older property, but one roof replacement on a big old rambling up/down duplex built 100 years ago will *crush* cashflow for many months or even years in some cases or an upstairs porch rebuild or any combination of medium priced capital expenses in a short period of time.

The agents will see right through that, and it’s hard to rebuild that reputation.

Also that keeps them from moving two blocks down and rebuilding a new location at the end of the lease.

The only way I could see that specific situation being a win is if you get it at a steep discount, finish the tear down and rebuild it swiftly and as cheaply as possible, and the property appreciates like crazy.

Because I guarantee that even $54,000 will seem a little short when you rebuild.

The ordeal cost us 3 months of no rent plus abatement and rebuild costs, but also left us with good lessons learned regarding lease responsibilities and abatement procedures.Thanks again to all for your input.