Sorry to say, but a major renovation may be required.

This could be a major fiasco, especially if the other offer is for more than whatever price your negotiations are at.

That would be my major concern of risk.That and where is the upside potential?

House is fully renovated, it don't require any major repairs at this point of time.

I like my particular model (using Evolve for booking, payments, calendar and I manage everything else) as it's a nice split between PM expense (they charge 13% of nightly rate) and how much time I have to put into each week (less than an hour per week so long as there are no major issues). 

My husband handles the majority of the contracting side of our business and I know he is always on the hunt for skilled tradesman.

@Ryan Slicer, Generally speaking, Solo 401k has several major advantages over an IRA, if you qualify.

Option #1 will most likely meet that criteria, you can price for any major repairs/cap x improvements and negotiate those during the acquisition, this will help you hedge against major items breaking down once you acquired.   

Majority of the auction properties here in my area are bought by the bank.The few that sell to investors are at high prices with very little profit margin.

I had not been in it in years but been having major problems with them destroying outside property and rent for a year hence why I did not renew lease.