What should I do keep it or sell it?

[Andre Ross]

Morning All,

I own a multi unit property in Cincinnati ,this is my first  rental property and I don't know if I should sell it or keep it. here the rundown why Im on the fence.

first thing I did was take action, but the actions I took were all wrong. lol

1. tried to wholesale the property,got it under contract for 25k. later found out that it had foundation problems so I ended up buying it for little or nothing.

2. did a soft search with a title company , findings were 8k in property taxes.

3. did a warranty deed transfer and recorded it with county , Now i officially own it.(later found out I should of did a closing instead.)

4. remainder of title search comes back with an additional 16k in liens. 

5. tried to wholesale it no luck, foundation scared a lot of investors.

6. got a realtor, they suggested I get a engineer report and plans to show potential buyers, did that cost me $1800. all low ball offers taking it off the market.

7. never done a rehab  so that's why Im undecided. 

any advice ,criticism is welcomed Im looking to learn from this.

thanks 

[Kris Wong]

You don't mention an ARV or a rehab budget, including holding costs, so we can't really offer a recommendation one way or the other. I can tell you that you're $26K in the hole before you even start talking about the foundation, so let's just say that it needs $30K before you can add any value to the property. Obviously that could be much higher depending on the scope of the foundation work. Any potential buyer will discover this during their due diligence. I would start by trying to negotiate the back taxes and the leans, to see if you can get rid of all that for less than $26K. Even if you decide to sell it, most buyers don't want to deal with that.