Just when I thought I'd seen EVERYTHING that you can see in the rental property business, I was absolutely SHOCKED today!

But I am a bit shell-shocked from my past landlord experience, so managing is last on my list only because of the potential margin on this Ferguson house.The house was remodeled, so the fix up part should be easy.

Waited a few months, no roaches, and I didn't call them back.Bottom line, roach eradication is a long grind, not a quick shock and awe treatment.

If you used the correct numbers, you would be shocked how much you'd actually be bleeding if you bought the place that you mentioned in your OP.

This was complete culture shock to me!

I am shocked...12K for an eviction?

Without answering your question directly, here are some the thoughts just off the top of my head.Look at the last tax assessment for the % land compared to the structure %, then figure the market value of the place unburned.apply your land %.Less Scrape Cost to get the old debris out to the dump (including any insurance needed to have workers on the site).Can you reuse the utility meters, drop and electrical breaker panel--if so keep them.Same with kitchen and bath things.This will give you what I'd call "Preliminary Reference Book Value" for the lot--post loss. 

In Corporate America, people who are told bad news (like they're getting laid off) usually go through a three-stage process of shock, panic, and anger.

We have a signed lease and deposit with a couple that love the house - they have expressed interest in executing a purchase option and we have put some preliminary terms in front of them on that subject.Anyways, one of the challenges with the house is that it's so unique. 

Like you, I'd initially consider bring up this info since it's quite a shock and you want your tenant to keep paying rent.