Rehab or Sell
I've been analyzing this darn property for months now and I just don't know what to do with it. My family owns it free and clear and we currently rent it for $1,200 a month, which is a steal in the Seattle market place.
It's never been updated and needs about $20K worth of foundation/structural work. It's looking tired inside and has knob and tube wiring, asbestos lined heat ducts (gravity heat), original plumbing, it needs a new roof and windows soon and some siding work and a paint job. Not to mention all of the cosmetic work, etc.
Built in 1919, it has about 1,200 livable SF but if it were re-habbed closer to 2,700.
If we sold today, I predict we'd get between $350K and $450K as-is. Estimate to re-hab is $300K, estimate to tear down is $600K.
It's possible I could get $850-$900K when done.
Should I sell as-is, rehab and sell, rent as-is, rehab and re-rent? I look at the comps and they're all over in this neighborhood - this home also sits on an arterial.
Thanks for any help - I'd be curious to know what others would do in the same situation.