Purchasing a house upside down?

[Jason W Bearden]

I am relatively new to Real Estate investing. I had a good friend who's mother past away and acquired her home. He approached me about relieving him of it knowing what I do. Upon inspection this house needs around $60k worth of work. On The 70% rule by the comps around it I could only offer $40k, but the mortgage ended up being over $90k. In most senses this is not a good deal. I was wondering if someone could tell me how to help him get out from under this albatross of a situation?