Potential Rental House for a newbie like me

[Michael Robards]

A neighbor recently passed and her house has gone to her brother.  After some time I approached him to see if he would consider an offer (my wife and i have wanted to get a rental property or two for some time.)  I had the house inspected and there are some items that will for sure have to be repaired prior to me renting it.  Here are the numbers.  

Purchase price 130,000.

20% down payment 26,000

Closing cost 3,000

Property taxes 2500 

Current appraisal closer to around 180,000 when looking at comparable single family 2/1 houses 

Repairs/renovations 15,000

Estimated rental price 1400

After running it through various calculators, it seems like the rental makes sense with these numbers, but let me know what you guys think.  

Financing wise... I have obviously a few ways to make this happen but I'm trying figure out what I don't know or what I'm missing about each. As far as I see it, I could 1) attempt a rehab loan (not a fan) 2) convential loan then immediately get a HELOC to pay for the repairs/renovations or 3) Pay for it all out of my own cash and refinance after a year or so of having a tenant to free up some of that equity to have for future deals. Any other options or pros/cons of each? I lean towards doing option 2, but I'm unsure of how I would move forward getting my equity back out of the deal, would I have to pay the HELOC first and then attempt a refinance? And what does the timeline look like on that.

First time poster so a little nervous/excited to hear what the BP family has to say.  Thanks in advance and any advice is greatly appreciated.