Sit down with someone who understands rates of return on income properties. Fortunately, income properties are very much a business/financial decision. Run an analysis on the property "as is" and then run an analysis as if the property were updated. Factor in the cost of updating and see if you can realistically get a better return for the expenditures.
As Keith says, meet wit ha Realtor and look at all of your options and the impact each has on you including the possibility of reahb/repair.
I suggest that you contact some Realtors with knowledge about income property. I have noted this in previous posts, but here goes again. There are well-intentioned Trulia members giving advice about your property, however IMHO they do not know enought about your situation to make suggestions.
I recommend that you sit down with a Realtor and discuss:
1. What the Fair Market Value for the property is.
2. What you hope to achieve in the sale: cash out, buy another
3. What are the tax consequences
4. What alternatives do you have to selling now
5. What will happen if you cannot sell it for your desired net profit
When you and your Realtor answer these questions I thnk you will be in a position to make the smart decision.
As for the fix-up: know that you will not get dollar-for-dollar return on your improvements, but some of them may be necessary to make the property sale-able. Then again, there are a lot of investors out there would would love to buy something likek that "as-is" and do the work themselves- if you dicount it enough to make it worth their while.
Best thing you can do is get 3 Realtors in there to give you a CMA and report on what it would take to sell it. It doen't cost anything for that.
If you want to email me, I will be happy to provide you with some currently active duplexes in the area and some comps. There's a similar duplex for sale on Harrower Court for $199,900. It's been on the market since this past October, no central or upgrades and that's the highest priced. If your property is assessed at $183,000, you "should" be able to get about $220,000 for it, but that all depends on condition.
Again, it you want to email me and provide the address, I'll be happy to provide you with some comps and also perhaps meet you at the property for an onsite evaluation - no charge.
Frank Biganski, Realtor ABR