(pictures of current house pre-renovation listed along with a second house-MISTAKE)July 23, tenants move out and return keysAug 31 First set of renovations complete, mostly cosmeticThrough Sep I negotiated with Norada and M.I.P to improve the renovations, I was not satisfied with work nor scope, they agreed to all items and improved the unit through Sep while it was on the market.Sep 12 Appraisal came in for asking price of $95,000, cost $495Sep 18th Third Party Property Inspectors found items, M.I.P fixed all issues, Cost $295Sep 28th, closed on the property, no tenant yetClosing: The closing was smooth, mobile notary came to my houseAll paperwork initially was signed via DocuSign, but ended up signing everything in front of the mobile notary at the end againElectronic copies were available post-closingNo issues with wiring money, etc.Post-Closing: Home is still empty, Reedy and Company Realtors, LLC is now the Property Management companyPictures of final renovations were provided after many inquiriesHouse rent rate was lowered to $965 after sitting vacant all summer at $1065I was not sure why they raised the rent so high during the closing process.

In SFR that is done just by fixing up the property to match the surrounding comps.

Fix it now rather than later even if a buy and hold.

My advice is to just get a professional over there to fix it and move on.

Maybe some sort of fixed HELOC?

I would make sure they understand you are taking on the burden of fixing up the place, and I would be buying it now before they spent all their time and energy getting it fixed up...The more time and money they spend the more they will expect at the point of sale.   

I fix up the property and sell it for 380kHow are we supposed to split the earning? 

Even if you fix it up nicely being it in a high crime area you will have nothing but problems. 

He says he doesn't want to fix it or pay taxes on it for much longer.

If you can I would invest in a dilapidated home that you could Fix and Flip and resale for a profit from it and I would invest in a similar way or some other investment that would make you money.