former flip turned REO @ 49k

[Matt Markel]

In my area, there is a listing that just came up at 49K. It was flipped by a guy i know and trust his work back in 2009, sold then for 99k. just went through foreclosure and is listed as REO at 49K. I know it needs carpet and paint, and other cosmetic TLC. Homes around it are selling as 3br 1ba for 74-77k, this is a 4br 2 ba with a 1 car garage. 3 realtors estimate ARV of 84-87k. Being a new investor, just wondering what people think. Rents in the area go for about 1000/mo. I have a couple of people with some deep pockets, who would front me the cash to purchase it so I don't chance loosing it due to bank financing condition on the offer. What my thought was, I could use cash investor to get property, refi after closing to payoff the investor. Depending on how all the numbers work out, would it be smart to take cash out above payoff for investor and take that cash to seek out more properties? With the rent being cash flow positive about $300, I figured I could pay back investor and put 15k into my pockets for additional properties. What would you guys do, take the cash or keep debt on property low? Thanks in advance.

Matt