How to move forward with deal?

[Eric Horton]

Hey BP’ers 

looking at purchasing a property we got under contract for 99k, sellers loan is 82k, Great location ARV is 260k. We have 25k that we can put down, The issue we keep running into, is purchasing the property. We looked into a conventional and were told it wouldn't pass inspection cause it's "distressed". The seller is open to subject to, but now we have an issue with how are we going to find the rehab? It needs a hefty rehab about 70-80k.

My question is, can we get a rehab loan on a subject to? Any other options you all would recommend?

We were hoping to hold the property, then when things calm down rehab it, so a HML would be tough right now.