How to fund this?

[Terry Royce]

So, I found a great house that I was planning on wholesaling. However, my girlfriend ended up falling in love with it.
The house needs about 20-25k, in mostly cosmetic work. There is a kitchen addition that settled and needs to be jacked up (its on posts not on cinderblocks, so my contractor said at most it should be 2.5K, not including the drywall that will crack when moved). And the roof may need repair and or replaced (5k). Most other stuff is cosmetic. carpets/floors, windows have already been replaced etc. AC already installed too.

My question is how should we fund this. She will be a first time homebuyer, so we should be able to go conventional since everything in the house works. There may be some minor electrical problems and there is a side porch that needs to be torn off, but all the systems work.

I'm wondering how we should fund the project. I am not familiar with 203k loans, but am worried it will be cumbersome, esp since my handyman/contractor does not pull permits for alot of stuff.

And from what I understand right now getting a HELOC on a non-seasoned house is nearly impossible. We would rather not have a 20k escrow from a 203k that we don't use up right away, but would like access to the HELOC if need be for cabinets, etc.

Also, we wanted to get in for as little money out of pocket as possible for closing and downpayment.

FYI The price is 123k, arv 220-230, with 20k necessary on the high side.
My girlfriend has excellent credit 760, good secure job (Teacher) but has little to put up or out of pocket without wrapping it into the loan.

Can anyone give some ideas?

Thanks

Pics-
http://www.flickr.com/photos/30354978@N00/2760290762/in/set-72157606703253014/