Buy and Selling a house

[Luke Stair]

Hi, 

I am looking at purchasing a house that is in rough shape.  The house is listed at 33K, 2 bed, 2 bath, $1430 SqFt.  After myself and a trusted repairman inspected the house, we concluded that it would require approximately 40-50K to repair.  The possibly only selling if for about 80k.  What he suggested was to offer $8500 and go no higher then 10K.  If I get it for $8500, then turn around and place it back on the market for 28k.  This area in my town is on the rise and investors are buying these properties.  

There is another investor who has has success with this strategy.  He bought a place listed at 43k, for $8500, after inspection it was too damaged to repair, so he turned around and listed it for 35k and sold if for 25K.  This was in a worse area then the one I'm looking at.  

Another piece of the puzzle is that I am limited on finances as I have replaced to HVACs on two of my units.  This would really stretch me then, but if It paid off would really put me ahead.  Always straddling the line of risk vs reward.  

I appreciate everyones input and advice from much more experienced investors than myself.  

Thank you.