We got started by buying an awful foreclosure living in it for a little over a year and gutting the inside.

We got started by buying an awful foreclosure living in it for a little over a year and gutting the inside.

We got started by buying an awful foreclosure living in it for a little over a year and gutting the inside.

Both tenants have been there a while and "want to stay"tenants pays all utilitiesProperty manager in the area claims vacancy is 8-10% for his properties in this areaThe property seems to be turnkey, and appears to be in great condition.asking price is 109,000taxes were $3200 last yearI plan to use conventional financing with 20% down.What is your gut feeling about whether this deal has potential?  

If this is a long term rental, I would likely remove the loose tile, mortar the hole level, and throw a rug over it until the tenant moves or goes on vacation, and then gut the bath and renovate.

This exists because a house built prior to 1950 may have to be gutted to the studs to get the lead out.  

You know this is not good, and you are asking us to convince you to the contrary - we won't.Trust your gut, @Drew Denham .  

My gut tells me there is a huge upside potential but I'm not confident enough on how to evaluate the future costs of operating the property.

When I had my plumbing/handyman business back there I completed 7 bathroom remodels from gut to finish.    

My instinct says yes, but I have not seen any flips where the investor has done this.