I recently inherited a old wood frame house that is in very bad shape in Daytona Beach. The roof is leaking, foundation is sagging, with very low ceilings, wood is rotting in certain sections, and the roof is flat. I initially thought I could reframe the floor then walls and then roof, but the more I analyze this job, the more confused get. This is my first property and really want to use this property for a rental and acquire more rentals in the future. I also briefly considered tearing it down and putting a modular home in its place, but I want this to be a asset and I'm aware modular homes don't really add any real value, so I'm not sure where to go from here. Any advise would be much appreciated. Thanks.
Do you know how much it would cost to get it fixed up? If it, get a GC in to give you an estimate. Then you can determine if it's worthwhile based on the ARV.
No need to put 70K into a house that will only be worth 60 when you're done.
Can you do the repairs yourself? Consider doing things yourself if possible. Remember anything can be repaired, it all comes down to cost and value added. Consider also anyone you know who is handy. If you have never done a repair, chances are you already know someone who can walk you through the repair.
You need to have a gc or an architect walk thru the place with you to help define what really needs to be done. Sounds like you don't have the experience to make these decisions. You also need to define what how much you are willing to spend on fixing this place up? Also decide on what level of finishes you are providing. Understand your comps in the area so you don't over build. In the end it may be better to flip this house and put $10k - 15k in your pocket than a several hundred a month from rent. I would get the roof fixed / patched asap. Water infiltration does more damage to structures than one thinks. Post some pictures on here as this will help others give you feed back, if you are still looking for it.
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