Taking into consideration the fact that you inherited the home from your grandfather, you likely do not have a mortgage. You can generate quick cash from it by selling it but, depending on your financial situation this home may become a steady source of income for you if brought up to date and than rented. You can do well by renting it on 1yr or longer lease contract or you can charge more per month and turn it into seasonal rental. Seasonal rental will require more of an investment because outside of the renovation cost you will incur a cost to properly furnish it. I realize you can use some of the furniture in the house but will it appeal to potential renter that is coming to the valley for couple of months and is willing to pay for it but want a nice place with nice furniture etc. All these things will need to be considered to decide if it will be worth it for you to put money into renovation. In my opinion, if you can afford the renovation and in this up trending market it is worth it to invest. Even if you decided sell it in short period of time you still will make a profit. Right now for the fall/winter 2014 season there is almost nothing available. We need more seasonal rentals. I come from a construction background and still have great connections in the industry. Give me a call and I will be happy to to speak with you about your grandfather's home and if you decide to turn it into a rental I can connect you with reliable people you will need to do the renovation right and on the budget.
Take a look at a recent blog I wrote on the subject of seasonal rental at:
Coldwell Banker Residential Brokerage
Sun City AZ