What investment option should I choose with my real estate?

I am thinking of buying the foreclosed rental property next door to me for an investment. It is a 2 family dwelling with a good piece of land in the city. However, there is mold in the basement and the foundation is shaky.

Should I:
a) Fill in the basement with cement and a concrete slab and rent out the apartments.
b) Buy it at a cheap price and sit on it until it sells for a small profit to someone who is willing to put work into it.
c) Buy it, tear down the house and try to sell the land to a developer (there are a few new condos that just went up on my street).

I could potentially get this property for $50K. Would an investor buy something like this for $100K or a little less?

Any input or opinions would be appreciated. We are really trying to throw our hat into the ring of the real estate world. Thanks! :)

I wouldn't try to endanger the health of anyone. I was told that cementing it in would be a fix for the problem since the mold is only a few months old. I'm sorry to hear about your difficulties. I know someone that lost their entire home to mold and I don't take it lightly.

Foundation and mold problems are two of the most expensive possible to remediate.
That said, LOCATION is a huge issue--you say there is a good piece of land there, etc. You have to research a few things to find your answer then as there is NOT enough info here for an intelligent decision.

First, what would comps be for the area? Figure your costs to buy and figure to demo the whole thing. Demo costs are more than people believe they are--it's got to include the permits to demo, the demo work, and the haul away. Then there is land prep, new permits to build, etc. This is not cheap. Pulling a number from my behind I'd say you'd look at $25K easily to demo a place and do all of that--could be more--no idea where you are, size of job, etc. Could you demo and sell the land? Maybe. Could you demo and build on it? Maybe--what kind of cash and credit and experience do you have?

Buy it cheap and sell it--highly unlikely with those kinds of problems PLUS depending on where you are you could be looking at two or more years before the market picks up. You need to make sure folks can't "squat" in the house or get injured; need to insure it.... Property taxes. This is not free. Plus if it looks awful on the outside neighbors could call zoning, move to have it condemned, etc.
As to selling to a developer. I doubt it. You seriously think they're not aware of the property? This is their business and they've got contacts.

Just too much missing data, but I will tell you this, to do well in real estate you need to do your homework. It's true in 2005 most anyone could do anything and make bucks. Those days are gone and will be gone for decades most likely.

I still believe in real estate but I know it well enough to know folks can still lose their shirts even when it looks like a sure thing.

Right now with the way the economy is, I wouldn鈥檛 even think about buying anything. Wait until home prices fall to rock bottom and investing in a home with mold and a bad foundation is a complete mistake. Hold on to your money; maybe invest what you would have put as a down payment into a high yield savings or a FDIC insured CD.

whatever you do you must call a mold remediation specialist to come in and give you a quote to fix. Dont you dare just cover it up. I have brain damage from being expsed to toxic mold. Please please call a specialist.