Hi everyone. I recently won my first investment property through a tax-foreclosure auction in Rochester, NY for $15,000, and I'd love some input from investors who have experience with low-cost rehabs, BRRRR, flips, and rentals.

The property is approximately 1,550 sq. ft., 4 bedrooms/2 bathrooms, built in the early 1900s. Public records currently classify it as a single-family home, but I've found historical records showing that it was previously a two-family property and was formally converted to a single-family in 2015. I'm having my attorney investigate whether restoring the former two-family use would be legally possible.

I have not been inside yet. The property is boarded and has been vacant, so I'm assuming there will be surprises. After closing, I'm having a full inspection completed before deciding on the renovation scope. From the exterior/code history, roof, masonry/foundation pointing, water intrusion, mechanicals, plumbing/electrical and possible vandalism are things I'm watching closely.

My goal is not to over-renovate, but I also don't want a cheap-looking $15K house. I'm planning to value-engineer the cosmetic work while spending appropriately on the things that matter: structure, roof, electrical, plumbing, HVAC, waterproofing, security, etc. I'll be getting multiple contractor bids once I have possession.

Depending on what the inspection, title work and comps show, I'm considering several exits: renovate and sell, BRRRR/long-term rental, restore it to a legal duplex if permitted, or hold it mortgage-free initially and refinance later.

For those who have done similar projects, how would you approach this one? What percentage of ARV would you be comfortable putting into the total project? At what rehab number would you walk away from a BRRRR/hold strategy and sell instead? Would you spend money investigating/restoring the historical duplex use? And with such a low acquisition price, would you use cash for the rehab or preserve cash and finance some of the construction?

I'm especially interested in hearing from anyone who invests in Rochester or similar C-class Northeast markets and has dealt with tax-foreclosure properties or 100+ year-old houses.

I'm still in due diligence/title work, so I'm not married to any particular strategy. I'm trying to let the actual condition, ARV, rents and numbers determine the exit rather than forcing the property into the strategy I originally had in mind.