Will this work as a BRRRR?

[Laura Cardenas]

Good Evening everyone!

I live in a "condo/townhome" it's one of two under the roof.  My neighbor approached me asking if I wanted to buy multiple times, I ended up telling him I'm interested.  He said he wanted 70k I told him I could give him 50k ( I paid 89.9 in December of '18 for mine and they're basically identical layout, mine appraised for 107k when I bought it) 

I am part of the local REIA and reached out for some help. I had a gentleman who does flips for a living come with me for the walk through of my neighbors home. There's no denying that it will need a lot of work. There is a lot of water damage through out, there's some black mold in places. The entire home needs flooring and paint. Kitchen needs to be gutted.

The siding on this house needs replacing, the gutters need repair/replacing and part of the roof as well. I'm estimating the reno (including the cost of replacing the exterior) will be 50k.

The gentleman who walked through with me said according to his training it's not worth more than 25k and not a great buy for a newbie. (I originally planned to just flip. I had a private money loan for 50k and was going to take a HELOC on my half for the reno)

I've been racking my brain all day thinking "How can I make the numbers work?" 

So here's my question, if I could get my neighbor to agree to seller finance for like 35k, no money down but i'll pay closing costs, use the 50k in private money I have to do the full reno, rent it and then refinance to pay off private money loan .. (I believe we could rent the unit for 1200/month) then it could work right?

Or should I just take the advice from this local flipper?

Thanks in advance!