Analyze this deal - Buy Note - Flip - or Hold

[Justin Morgan]

Seller Contacted me...
Seller is 4 months behind... owes $80k +$4k arrears.
Found out its a private note...
Called Private note holder, OLD guy wants some help foreclosing on the sellers.
Home is worth $75k
It needs $5k in repairs.

The note holder will sell his note for $60k to me OR he would be willing to finance.

The Plan:: I'll offer him $55k not a dollar more and buy the note. Fix the home I'm into it $60k. Sell for $75k minus close NET $10k... PLUS: The seller is wanting to figure something out for the Arrears and negative equity. I figure have her take a prom note to me for $10k or $5k cash and we are done.

I'll NET $10k-$15k.

This is all contingent on ME not having to foreclose on the seller. I'll get a dead-in-lue signed before I buy the note (maybe?). The cost to foreclose would be $5k to the note holder... it should be easy to avoid for me because of a positive relationship with both parties.

Can I use him as private financing and hold this home?
Should I pay him the $55k and flip it?
Other options I might be missing?
Does the Prom note idea work?

Thoughts??