Take a look at the local market and see what some 2bd/1ba homes have sold for and what they would rent for. 

Using real world comps & calendars from your personal experience, local PM's, online estimators.

You could turn the matter over to a collection company (including law firms that do collections on contingency), but normally, they charge a very high percentage of what they recover, and you normally have to authorize them to settle for any amount the want to.

The next steps will involve accurate construction cost estimates by a licensed contractor (or two) and connecting with a lender (possibly current local bank) for construction financing.

Big difference.Do you know other local investors and did you ask them who their go-to agent is?

Gone are the days where you can buy a cheap 100 year old multi-family off the MLS, turn it over to a local property manager, and make a great cash on cash return out of the gate.

I agree to repay any duplicative assistance as directed by the Agency.Nothing in this Agreement precludes the owner/agent from using any and all remedies available under law, including the institution of eviction proceedings against the Applicant, if the Applicant fails to pay any future rent due after the date of this award or otherwise violates the terms of tenancy.I reached out to my lawyer, who told me rudely that he wasnt contracted to advise on this, and i offered to pay, but never heard back.

@Claudio Garcia Zuniga   Assuming this property is in Texas, state law will only allow you to pull 80% loan to value out of your primary home.

My properties are in three different states and I use local property managers for full-service management. 

Check your local laws and see what will be the fast and easiest for you.