If the property is truly worth $36.5k, just sell it, pay off the high interest loan, pay Uncle Sam short term cap gains, and you may even have some cash left over which would be a huge win.

And this was no short sale or foreclosure either.  

I will give an update shortly...

The property became a short sale, and was on the market for a year.

It would allow you to invest in some short term notes, maybe with builders, to keep your money earning a net return while only being committed for a short time frame.  

A house in my area, listed for about 130k, needs work, bank will/wants short sell (sale?)...

On top of this, it is a very walkable city with great parks and access to water (Hudson River or Newark Bay) and a cruise line.As a heads up, Bayonne will be going through a tax revaluation shortly.

I mean, here’s my short answer—If you’re new and want to jump in the game, if it was my situation— I’d make an offer below list price, make sure remodel is legit, and verify those suggested rents. 

@Assaf Kehati Short answer- yes, it's the perfect time.

An exposed roof left like that can destroy a house in short time .