** Please Help!! Property Analysis/Decision **
Hello and thank you in advance for your ideas/guidance and help. It is honestly much appreciated!!
I purchased my first rental property 11 years ago with zero knowledge of what I was doing and today things are only worse...The house address is 5120 NE Ash Grove Drive, Lees Summit, MO 64064 in the Lakewood area. It was built in 1987.
The house is 3600 sq ft, 5 bedrooms (4 above grade, 1 below) 4 bathrooms (3 above, 1 below). Above grade square footage is 2100 and below grade walk out basement is 1500. Also in the walk out basement is a full kitchen, living room, etc. 2 car garage.
I paid $262,000 in 2006 and purchased it with a $0 down payment, no income, no verification interest only loan for the first 10 years. The current balances are:
1st loan $208,000 at 6.75 Monthly payment is $2,152.56 PITI with 29 years remaining.
2nd loan $47,326 at 9.75 Monthly payment is $456.48 with 29 years remaining.
The tenants have been there for 10 years and pay $2,150. The interior of the property is very bad (appraiser told me most foreclosures are nicer!) and i'm guesstimating it would need approx $75,000 to bring it to selling condition. Earlier this year I put on a stone coated steel roof for $28,000 and had it repainted/wood rot siding repaired for $3,600
With the $75k repairs it would be worth approx $300k on the low end and $325 on the high end.
I have no idea what to do with this property, I'm 40 years old and really don't want a foreclosure on my credit report and I also don't have the $75,000 needed for the repairs (although I could put together $50k during 2018)
Thank you, Paul~