Pro: I found a Motivated seller. Con: I am broke with Fair credit

[Lea Cole]

Hi Bigger Pockets!

My name is Lea Cole

I am in a bit of a pickle but i will explain everything throughout this discussion post...

***Skip to short summary if you do not wish to read my offly long story!!!***

In Philadelphia, PA, a friend of mine introduced me to a woman who was,  56 years old, and is in desperate need in moving out of her state. The property is 1,020 sq ft home  4 bedroom, 2 bathroom, condo that was built in 1953,  with an appraisal of $91,000 (Repaired), $70,000 (As is) .The only special features the property has  is that it has a basement and private parking which is a plus because most properties in  the neighborhood do not have. The mortgage has a small balance of $22,000 with a $232 of monthly payments which includes principal, property tax, and fire/water insurance. I did  extensive research, contacting multiple construction companies, estimating materials + labor. I have found that it will cost about $18,000 (Maximum) to repair the property. 

The woman was so motivated to getting rid of the property because her husband died and she cannot bear to stay in the property much longer. Deep in my gut i feel that there is another reason why she is in such a hurry, a part of me felt that she was wanted, or maybe someone is looking for her because she seem to be very paranoid.

Buy anyways, she tried posting the property online for as low as $45,000, and even found a buyer, but the buyer did not have any any money and wasted a lot of her time. The mortgage is in her husband's name, though her and her husband is both on the lease together. But she will not sign the deed of gift until i show proof to her that i will take care (repair) the property. She is very desperate in getting rid of this property and has given me 2 weeks to take action so i need to do something FAST!! 

Short Summary:  A woman has agreed to hand me a property for FREE, i just have to take care of the property and that is what i am going to do.

This is an amazing deal and i want to take advantage of this. Though, i  conjured 2 choices on how I should proceed with this...  

Choice #1: Pay off the mortgage $22,000 + Rehabilitation, which cost about $18,000 (i did research,  and own the property.place the property on section 8 ($2500-$3000 monthly profit).

Or

Choice  #2: Repair the property which is $18,000(maximum), and just rent the property out to a tenant. (since mortgage is not paid off i do not own the property therefor i cannot place property on section 8)

Now i know what you are thinking, Decision 2 would be the best route to take, but unfortunately if i do that, i am more likely to have problems renting the property because of these common issues...

1. Very Competitive Location. (There are lots of properties for rent)

2. Dangerous  Neighborhood 

3. Vacancy fees, MLS fee's, ETC

3. Rent is cheaper 65% then section 8 program (smaller payout)

I prefer to put the property on section 8 because i KNOW that i will receive my money, or at least most of it. I hate dealing with tenants why are delinquents on paying rent.....

So overall, my questions to you is.... 

Is there a loan or special repair's program that can i use to pay for this, Unfortunately for me i do not have $18,000 - $40,000 laying around. I only have $1000 out of pocket to put toward this, though that is all the income that i have and i prefer to pay "little to no money down". My credit is also fair, so that is not good, but it is also not bad.

 I feel like i have this amazing lead, but i am just the wrong person because i do not know what to do at this point. The seller could have chosen anyone for this but yet she have chosen me and i do not want to let her down.........

Please give your full an honest opinion i would really appreciate the help because i do not know what to do, there may be another solution i could take that you may know that i do not. I am still new at real estate..

***Please do not recommend  "Rent to Own" on this property, I know that would be the best route to take, but this property is strictly for Long-Term rental Only. I made a promise to the seller and i keep my promises no matter what.***

Thanks so much and i look forward to hearing your reply! :)