I have to review the building codes but that may allow me to retain a bedroom/bath but just remove the kitchen and potentially rent out as a "private room" on AirBnb to offset some of the loses.

Tenant moved out and in the bedroom corner, a little in the closet corner and a corner in the kitchen, there is mold growing on the wood.

I'm submitted my first offer today.Sq Ft = 1,018List Price = $65,000Initial Offering Price = $32,000Max Limit = $40,000ARV = $125,000Realtor Fees = $7,000Closing Costs (Buy & Sell) = $1,200Inspection Fee = $350Holding Costs (Personal Loan) @ 6 months = $4-6,000Total Variable OH = $14,550Rehab Costs w/ contingency = $34,900Net Profit (ARV - Variable OH - Rehab Costs - Purchase Price) = $35,550Net Profit After-Tax (Impose short-term capital gains rate at 39.6%) = $21,827Work that needs to be done:Rebuild mudroom and re-route washing machine/dryer lines = $4,000Kitchen Rebuild: Cabinets = $1,000Granite CT installed, sealed, beveled = $1,400 New appliances (may use a 2nd hand shop) = $3,500Flooring and back splash = $1,500TOTAL Kitchen = $7,400HVAC (received quote w/ ducting install) = $6,000Front porch repair = $1,000Half-bath install 12 sq ft (@ $100 per sq ft) plus cost of supplies & equipment = $3-4,000Add closets to each bedroom = $1,500Fix ceiling water damage = $2-3,000 Foundation leveling (house has settled) = $1-2,000Renovate full bath (replace tub, new vanity, replace toilet, re-tile) = $2,500Simple landscaping (mulch and shrubs) = $500Fixtures and Hardware = $1,000Contingency = $2,000GRAND TOTAL = $34,900I'll be doing the majority of the work but will have to sub-contract out construction of the mudroom, half-bath install, and closets.Immediate Questions I'm concerned about:1) Cost to rebuild mudroom.

My question is, the several customers that went and saw the property said that the price was too high and the kitchen was in really bad shape, which it does need an update being an original kitchen but we put a lot of time cleaning it and painting the kitchen cabinets and walls and putting new lights.I was wondering if we should drop the price after this weekend.

And then I would focus on making the rooms that the Air Bnb guests would use look as nice as possible (living room, kitchen, master bedroom, bathroom).

More recently when I had to pay the pest control guy a 3rd time to take care of mice in a house where the tenants were storing garbage in the kitchen, I thought to bill THEM for this visit.

They also left unused paint, new shutters and alot of other miscellaneous items.So the only thing I have to do is resurface the hardwoods in the living room & bedrooms, put tile in the kitchen, dining room and bathrooms.

In certain neighborhoods, its a surprise if there's not a kitchen in the basement.

The house does have a nice kitchen and some beautiful wood work.

. #4 able to create nice kitchen #5; able to create nice baths , we make sure we do all the other details as well but those are the minimum requirements.My thoughts