Help solving a sticky situation

[Dennis Yosco]

Ok so I have gotten a few leads like this and I want to figure out a way to purchase these properties. 

Scenario:

Arv 490k

Reno 30k

Rents for 3600m or if I split up I can rent it for 4200m 

It’s located 5 blocks from my house 

Here’s the sticky part. He told me he needs 385k to avoid foreclosure and pay off his debts to the house. 
I would pay 325k max. 

As it is right now, there’s no foreclosure date right now but the process has started. He’s open to a subject to if we can get the numbers to work. He’d prefer to walk away with a bit of cash because his wife had cancer and they are behind. They don’t live in the home. 

I just got his mortgage info and I’m gonna try to reach out to the lender to get the scoop. I can get the cash to purchase but I don’t want to pay over 75% of the arv. I know this property in 5 years will be up 20% easy. Im stuck because I know at 385k plus reno I’ll still be good but it’s a tight deal today. 

How can I solve these problems when they come to me. I have another where the arv is 525. Mortgage owed is 440k. It needs 60k of work. Shes distressed but pays her mortgage every month. Any tips for negotiating with a bank to help reduce the price to purchase based on repairs?

I’m going to try to really fix these situations and try to become that specialist. Just need to find one that could be a proof of concept. 

Thanks in advance!