Bought a house cheaply. What now?

Hello dear forum participants!

Background: My friend bought a house cheaply at a forced auction, namely at the land value. He placed the lowest bid but assumed that the other attendees would bid higher. However, no one overbid, and now he owns a house (in which we/he do not urgently want to live ourselves, at least not for the time being).

The house:
The house is generally in good condition, at least at first glance. Some things need to be renovated (e.g. heating). The last renovation apparently took place in the 1980s. I can't say more about it at the moment.

My question:
From your experience, what is the best course of action? What makes financial sense?

For example: The house could simply be resold (possibly partially renovated and then definitely at a higher price).

2. Renovate the house and rent it out as soon as possible? (two parties could live in the house, and part of it used to be a restaurant, which could possibly be leased again).

3. Renovate the house from scratch and then resell it.

What other options are there in your experience? Where is the best return?

I look forward to your answers and tips!

Best regards
Berenike

Is it still occupied by the previous owner or even rented out?

Well, since the house was sold at a very low price, I assume a bad (micro)location and/or a corresponding condition. The house probably isn't worth much more than that.

I can't say which option is correct. Go through the house with a professional and have them point out the defects. See how renovated houses are sold.
Do you need financing?
Remember the speculation tax. It halves the profit

It depends on the location. The more attractive it is, the less I would invest financially before reselling. I wouldn't put too much into it anyway, as a buyer usually has completely different ideas.

The same applies to renting. What is the maximum realistic cold rent? If only 5-6 euros per sqm are common, then a renovation is not worthwhile. If the building also includes a restaurant that might be leased out, this tends to have a negative effect on tenant interest. Most people just want peace and quiet.

I would only do a basic renovation if I a) can rent well and/or b) want to move in myself later.

When reselling, you have to keep an eye on the speculation tax. It is due up to 10 years after purchase.

Is it still inhabited by the old owner or even rented out?

No, no one lives in it anymore. But until 1-2 years ago, someone still lived there.

Your friend bought a house without any knowledge and without a solid plan because he just wants to somehow make money with it. Are you serious? Wow, is that courage or is it called something else? Whatever he/she decides now, at least he will learn something from it and maybe it will even pay off. Apparently, neither tax nor construction matters were properly considered, but it was done purely out of profit-seeking/greed. I believe your friend needs something different than a house building forum. And....a price usually has a reason, the cheap one as well as the higher one, even if the real estate layman might not notice it at first glance.. Your quote "house cheap - what now" is really the highlight of the week......and comes right after kid there, what now or money gone - what now? Sorry-