Subject To Strategy??

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Good Morning Everyone,

I am a newbie in the real estate world, first time posting in these forums, and I have a few quick questions.

My wife and I own 1 rental property, and have lately been positioning ourselves to flip houses. We reached out to some "off market" leads and we were contacted by a gentleman wanting to sell his home. He currently has a family member renting, however the tenant is doing nothing in terms of maintenance or repair. The home itself is in decent conditions with minor repairs needed and a good cleaning. The seller lives almost 20 hours away and just want the house gone. He owes roughly $160K split into 2 mortgages and wants $165-$170K so that he can pay off his loans and walk away with some cash. The tenant is leaving in a couple weeks and the seller has no way of making his July mortgage payment.

My wife and I are very interested in this deal and the opportunity to start our business, the problem is we don't have the $170k cash to pay this man. Even a down payment for a loan would be hard for us when we factor in cost of repairs. So my question is: Would a subject to strategy work in this situation? I could give him his $5,000 up front then take over payments on the mortgage and all utilities? Would we close with him and then close with the retail buyer when all repairs are made, or is it just one closing at the end of everything? I know these may be dumb questions but I really want to do everything I can to ensure a successful deal. Also, what would you recommend is the best way to pay for the repairs if cash is tight?

Thank You all so much for your help. These Bigger Pockets Forums have really opened my eyes to the power of Real Estate and have created such a hunger for action!

Keep up the great work!

-Pete