FIRST DEAL!! any advise?

[Terri Shields]

My daughter and I (new investors in Indianapolis) are under contract for our first house! We have experienced some twists that have caused us to consider flipping the property instead of  holding it to rent. Can anyone offer advice? Situation: Contracted for $95K, 1150 sq ft, 3 bedrooms, 2 baths, built-ins, bay window, 2 car garage, front covered porch, very cute. Comps show average value $139K. Area house values range from $90-$150K in that area according to realtor. On the walkthrough, the home looked great other than some rotting siding, a couple broken windows, stained carpet and old water stains on kitchen ceiling. The inspection brought to light many more expenses than we had anticipated: chimney collecting water and needs replaced, roof needs replaced, even decking is wet and needs replaced, insulation is wet and needs replaced, and drywall will need replaced. Evidence of termites, completely blocked ductwork, broken windows, wood rot, landscape grade running toward the house (on slab) and many miscellaneous items. Have not had estimates on repairs yet. We have enough cash funds for 20% down and $10Kor $15K towards repairs...not enough to cover all items.  Instead of renting the house, we are considering borrowing money to repair and flip. Seller has outstanding $78K mortgage and is willing to come down in price instead of making repairs himself. Seller agent is talking to bank to see if they will take less (like a short sale except not going through the whole foreclosure process). Our next step is to get estimates on repair costs and then run the numbers to see if it all works out. Any advise as we proceed?