If I did some minor repairs on the house and sold it for let’s say $120,000 (that’s just an estimate) what would my taxes look like for next year?

I'm in the Austin/San Antonio area and would be happy to provide a free estimate for you on your cash out refinance!

If someone is okay getting creative, knowing they are inheriting a mess and factors in a conservative estimate for attorney fees into analysis/rehab costs, etc, it could still be a good opporturnity in an otherwise very competitive market where the eviction process would scare away most buyers.

Even with a conservatively estimated $70k renno we expect a 10% cap rate and 22% BTCF.The unit is fully gutted now.

DON'T TAKE RENT ESTIMATES AT FACE VALUE!!

DON'T TAKE RENT ESTIMATES AT FACE VALUE!!

I'd agree with what Bryan said - ignore a lot of that, and make an offer where even with conservative estimates you get positive CF! 

Take out 40% (estimate) for expenses and you will have roughly $107k of NOI.

This would get that job done (which is a big job) but at the same time increase the property value.The new rental suite will likely rent for $1500/m but to get city approval, the whole house as a duplex/triplex needs to be bought up to code  (fireproofing, electrical, plumbing) which will likely make the whole build cost close to 300k (contractors estimate).

Right now it is not listed and I believe well below market value with the Airbnb calculator estimating $45,000 income possible.Would really like to make this happen so any advice on how to structure a deal would be great.