OK Everyone I'm in a little bit of a conundrum and I think personal feeling may be outweighing the business side so I need some help from a outside opinionI have 4 rental properties all showing a good return in less than ten years they will be payed off and showing much better,the wife and I are tinkering with the idea of moving out of state, and we have a great property manager available that would be extremely cost effective. we currently use him-on one property to " try him out "We currently have a FHA loan on a 30 year 27 left 3.5%currently payout 950a month that includes taxes and insurance and a pmi that will falloff in two years lowering the note but about 150.although once we don't live there we will loose homeowners exemption thous increasing the note by roughly what the pmi drops.insurance will however be lower because we would drop it to the commercial policy that we have the other rentals in instead of a personal dwelling policy.its in a b- area up the street from the high school and 1 block from the historic district.two bedroom duplex's next door get $750 a month.rent in that area isn't extremely high so I am figuring a rent of $1250 after property management fees thus netting a 300 return before any repairs. recently upgraded the inside so hopefully that wouldn't be a issue for a few years but you never know.my question is would it be worth keeping?

Sounds like,  just at a rough number you should be paying no more then  $130,000 for this house,  and that is only if the renovation cost will  stay at $40,000.  

It currently has a mortgage balance of 135k and property is worth roughly 175k.However, after meeting with him I KNOW he will be hard pressed to pay back this loan and I get the strong feeling he will refuse to leave voluntarily.

I've been there and it can be pretty rough and very expensive.

And or have been blown off by the brokerage community because they are dealing in low value assets in tough to rough markets..

My campaigns aren't all that targeted, currently I'm hitting a geographic area, every door, and getting ~10 calls per 1000 mailers (for really rough numbers).

For short sales you have to include Real Property Transfer Tax which is roughly 2% of the sale price.I can connect you with my title company who i've used for purchases in the BX as well, hit me up if interested

If I can grab that and create parking for the building, it should be worth roughly $230.  

Here's a few issues I see with this - The units are most likely being used for student housing which is why they may be in rough shape.

The units have the potential to produce roughly $10,000 per month in total income (for 4 units with large yard and attached garage...plus income from the extra 5th garage).Keith JohnsonREO/Bank Owned Buyer's Agenthttp://[email protected](408) 483-9261CSR Real Estate Services5330 Camden Ave.San Jose, CA 95124DRE# 01741178P.S.